JAKARTA: Indonesia imposed fuel rationing and mandated work-from-home for civil servants amid soaring global fuel prices triggered by the Middle East war.
The government limited private consumers to 50 liters per vehicle daily and assured no fuel price increases, despite subsidies totaling $12.3 billion annually.
Energy Minister Bahlil Lahadalia urged public cooperation in purchasing fuel responsibly. The government, which relies on subsidies to control costs, faces pressure as oil prices exceed $100 a barrel.
Indonesia, an oil producer, remains a net importer and has avoided major fuel queues unlike neighboring nations. The country’s fiscal deficit constraint may force policy changes.
President Prabowo Subianto aims to boost GDP growth to 8% by 2029 through increased spending, even as economic strain mounts.