Indonesia imposes fuel purchase limits and civil servant work-from-home orders to conserve energy, ruling out price hikes despite soaring global oil costs.

JAKARTA: Indonesia announced fuel purchase rations and mandated work-from-home for civil servants to conserve energy stocks amid global price surges.

Coordinating Minister for Economic Affairs Airlangga Hartarto said private vehicle owners will be limited to 50 litres per day to ensure distribution.

He announced the measures from Seoul, adding civil servants will work from home every Friday as part of energy-saving efforts.

The government confirmed it will not increase prices for subsidised or non-subsidised fuel.

Presidential spokesman Prasetyo Hadi warned against misinformation, stating “we guarantee the availability of fuel… And there is no price adjustment.”

Indonesia is a net oil importer despite being a producer, and heavily subsidises fuel.

The 2026 subsidy is valued at USD 12.3 billion, representing about 5% of the annual budget.

It was calculated based on an oil price of USD 70 per barrel, but prices have since exceeded USD 100.

Observers note the government may be forced to act as law requires keeping the fiscal deficit under 3% of GDP.

Energy Minister Bahlil Lahadalia called for public cooperation, saying “We need to purchase fuel reasonably and wisely.”

The crisis stems from the Middle East war, which began with US-Israeli strikes on Iran.

Iran’s de facto closure of the Strait of Hormuz has halted a fifth of the world’s crude supplies, driving up prices.

Unlike some neighbours, Indonesia has not seen long fuel queues despite the global spike.

The government is also setting aside up to IDR 80 trillion (USD 4.7 billion) to shield the economy from fallout.

It recently announced a one-day-per-week reduction in its free school meals programme, excluding high-malnutrition areas.

President Prabowo Subianto aims to boost economic growth from 5.1% last year to 8% by 2029 through high public spending.

Previous fuel price hikes in Indonesia have triggered mass protests.

 The Sun Malaysia