Jakarta: Subsidy bill looms over Prabowo’s growth goals amid oil spike

try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Trump vows to “bomb the hell out of the shoreline” to reopen Hormuz Goldman warns S&P 500 could decline to 6300 if growth weakens AI winners and losers: This sector is seen as ’a clear beneficiary’ Morgan Stanley says Fed risks are skewed towards later and more cuts (South Africa Philippines Nigeria) Jakarta: Subsidy bill looms over Prabowo’s growth goals amid oil spike By Author Simon Mugo Commodities Published 03/14/2026, 10:58 PM Jakarta: Subsidy bill looms over Prabowo’s growth goals amid oil spike 0 BBRI -1.68% BBCA -0.36% PGAS -4.90% PGEO -3.54% Investing.com -- Indonesia’s fragile fiscal balance is facing a fresh test as the escalating conflict in the Persian Gulf threatens to upend energy supplies just as the country prepares for the massive Eid Al-Fitr travel surge. Get deeper insights on how the Iran war impacts global markets - InvestingPro According to reports, the administration of President Prabowo Subianto is grappling with the "double whammy" of spiking regional fuel prices and a looming 12% jump in gasoline consumption as more than 100 million citizens begin their annual migration home. The subsidy strain and the $92 ceiling The primary concern for Jakarta remains the ballooning cost of maintaining some of the region’s most aggressive fuel price caps. Even before the recent hostilities pushed crude prices toward the $100 mark, Indonesia had earmarked approximately 381 trillion rupiah ($22.5 billion), roughly 10% of its total budget, for energy subsidies. Finance Minister Purbaya Yudhi Sadewa has already warned that the country risks breaching its legally mandated 3% deficit ceiling if the Indonesian crude benchmark averages above $92 per barrel this year. "The government is asking the public to remain calm without presenting concrete solutions," noted Bhima Yudhistira Adhinegara of the Center of Economic and Law Studies. The administration has ruled out price hikes before the Eid holiday to p...