Indonesia has introduced daily fuel purchase limits and mandated remote work for civil servants to conserve national energy reserves amid sustained global oil price increases linked to the Middle East conflict. The measures take effect Wednesday and will be assessed every two months.
Under the new policy, private vehicle owners are restricted to purchasing 50 litres of fuel daily. Government personnel will work from home every Friday, reduce official vehicle usage by half, and limit official travel by up to 70 per cent. The requirements exclude workers in critical infrastructure, including healthcare, security, energy management, and food and water distribution. Coordinating Minister for Economic Affairs Airlangga Hartarto stated the initiatives are projected to save 121 to 130 trillion rupiah ($7.1 billion to $7.6 billion), supporting supply chain stability while reducing fiscal strain.
Southeast Asia’s largest economy operates as a net crude oil importer despite domestic production. Jakarta maintains substantial energy subsidies valued at $12.3 billion, which account for approximately five percent of the proposed 2026 national budget. The subsidy calculation originally assumed crude benchmarks near $70 per barrel, but recent geopolitical tensions and shipping disruptions have pushed prices above $100. Conflict-related restrictions on the Strait of Hormuz have curtailed traffic through the corridor, which typically handles one-fifth of global crude flows. Neighbouring states have already enacted similar conservation protocols, including administrative remote schedules and adjusted academic formats.
Officials confirmed retail rates for both subsidised and commercial fuel will remain unchanged from April 1, addressing market speculation regarding immediate adjustments. Presidential communications secretary Prasetyo Hadi verified that domestic stockpiles are secure and distribution channels are functioning normally. Energy Minister Bahlil Lahadalia urged motorists to prioritise mass transit and electric vehicles while practising measured consumption. Additional administrative adjustments include a one-day reduction each week in the national school feeding programme, excluding regions with high malnutrition rates. Regular classroom attendance remains mandatory, and private sector remote work guidelines are pending further review.
Historical retail price increases have triggered public demonstrations, leading authorities to prioritise market stability alongside fiscal compliance. National legislation caps the annual fiscal deficit at three percent of gross domestic product, creating structural limitations on extended subsidy programmes. The administration will continue monitoring inventory levels and international energy markets, adjusting domestic guidelines to align with broader economic targets and regional supply conditions.
