JAKARTA - Indonesia’s President Prabowo Subianto said the country will maintain fuel subsidies for “around 80% of its population” despite rising global oil price risks linked to tensions in the Middle East, particularly around the Strait of Hormuz.

Speaking at a Government Working Meeting (RKP) on April 8 at the State Palace, Prabowo said that protecting domestic purchasing power is Indonesia’s priority even as geopolitical instability threatens energy markets.

“The current war in the Middle East proves that one strait, the Strait of Hormuz, determines the lives of many nations and the price of oil,” Prabowo said. “One strait, 33 miles, what’s that? Sixty kilometers. Now, the key to Hormuz is held by one country.”

“There is a period that we must get through together, but I thank my team—my economic ministers are reliable, thank you. They reported, “Sir, stay calm. For subsidized fuel, we will maintain it for the ordinary people. We will maintain it for 80 percent of our population,” Prabowo claimed.

Meanwhile, for the more affluent segments of society, President Prabowo continued, they can purchase non-subsidized fuel. “Rich people, if they want to use expensive fuel, they have to pay market prices,” he said.

Indonesia’s government, led by Finance Minister Purbaya Yudhi Sadewa, has previously decided to keep subsidized fuel prices unchanged through 2026 despite oil potentially reaching US$100 per barrel.

However, the subsidized fuel purchases have now been capped at 50 liters per day per private four-wheeled vehicle from April 1, under a policy announced by Airlangga Hartarto at a late March press conference. The transactions are overseen by BPH Migas to regulate distribution of Pertalite and Solar fuels.

“[Energy & Mineral Resources] Minister Bahlil Lahadalia says it’s safe, so we [tend to] relax. But “safe” does not mean we can be complacent or laid-back. No. We must work, we must stay vigilant,” Prabowo said further. 

Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto has implemented a one-day-per-week work-from-home (WFH) policy for state civil servants and private-sector employees starting early April. Minister Purbaya estimated that this policy could reduce fuel use by up to 20%.