Indonesia has announced fuel rationing and new work-from-home measures for civil servants as it moves to conserve energy supplies amid rising global oil prices triggered by the Middle East conflict.
Coordinating Minister of Economic Affairs Airlangga Hartarto said the government will limit fuel purchases by private consumers to a maximum of 50 litres per vehicle per day.
“To ensure fuel distribution, the government will regulate purchases… with a reasonable limit of 50 litres per vehicle,” he said during a virtual news conference from Seoul on Tuesday.
Under the new policy, civil servants will work from home every Friday. The government will also reduce the use of official vehicles by half and cut work trips for government officials by up to 70 per cent.
The restrictions will not apply to government workers in essential sectors such as health care, security, energy, water, and food supply.
According to Hartarto, the measures will take effect on Wednesday and will be reviewed every two months.
The government estimates the policies could save between 121 trillion and 130 trillion rupiah, equivalent to about $7.1 billion to $7.6 billion.
Several countries in Southeast Asia have already introduced similar measures since the Middle East war began on February 28.
These include remote work arrangements, reductions in official travel, and in some cases online schooling.
While some neighbouring countries have increased fuel prices to ease fiscal pressure, the Indonesian government said it has no immediate plans to do so.
Indonesia, Southeast Asia’s largest economy, remains a net importer of oil despite being an oil-producing country.
Fuel is heavily subsidised in the country, with the government allocating about $12.3 billion for subsidies in the 2026 budget.
The subsidy accounts for roughly five per cent of Indonesia’s total annual spending.
However, analysts warn that the government may face increasing fiscal pressure as global oil prices rise.
Indonesia’s 2026 subsidy calculation was based on an oil price of $70 per barrel, but prices have since climbed above $100.
By law, the government must keep its fiscal deficit below three per cent of gross domestic product.
Despite the global volatility, Hartarto said Indonesia’s economy remains stable.
“The national economic condition remains stable with strong fundamentals. National fuel stocks are safe, and fiscal stability is maintained,” he said.
Energy Minister Bahlil Lahadalia also urged Indonesians to reduce fuel consumption by using public transport or switching to electric vehicles.
“We need the support and cooperation of the public. We need to purchase fuel reasonably and wisely,” he said.
On Sunday, the government also announced a one-day-per-week reduction in its free school meals programme, although the measure will not apply to areas with high malnutrition rates.
Authorities said in-person schooling will continue, while work-from-home policies for the private sector could be considered at a later stage.
Unlike some countries in the region, Indonesia has not experienced long fuel queues despite the global energy shock.
Oil prices have surged following Iran’s effective closure of the strategic Strait of Hormuz during the ongoing conflict.
The waterway normally carries about a fifth of the world’s crude oil supply as well as significant volumes of natural gas.
In a statement sent to AFP, the Indonesian government said there would be no increase in fuel prices from April 1 for either subsidised or non-subsidised fuel.
Officials also warned against misinformation about a possible price hike.
Presidential spokesman Prasetyo Hadi said the government would ensure adequate fuel supply and stability in the market.
“We guarantee the availability of fuel… and there is no price adjustment,” he said.
Indonesia has historically experienced large protests following fuel price increases, making subsidy reforms politically sensitive.
President Prabowo Subianto has set a target to raise the country’s economic growth rate from 5.1 per cent last year to eight per cent by 2029, driven largely by increased public spending.
