JAKARTA, April 13 (Xinhua) -- Indonesia can withstand the economic impact of Mideast conflict-driven oil price surges for up to 10 months without cutting fuel subsidies, the country's Coordinating Minister for Economic Affairs Airlangga Hartarto said Monday.
Airlangga told foreign media here that subsidies for diesel and other fuels would continue through the end of 2026, with the government having sufficient funds to cover them.
Global crude prices have risen above 100 U.S. dollars per barrel since late February strikes on Iran by the United States and Israel, which effectively disrupted the Strait of Hormuz.
Indonesia, a net oil importer, heavily subsidizes domestic fuel to maintain economic stability, control inflation, and protect the purchasing power of low-income households from global oil price volatility.
The 2026 budget assumed a global oil price of 70 U.S. dollars per barrel, with each additional dollar adding about 6.8 billion Indonesian rupiahs (approximately 506,000 U.S. dollars) to state expenditures.
According to the minister, Indonesia imports 20-25 percent of its oil from the Middle East but is exploring alternative sources. ■
