Prabowo Considers Fuel Consumption Policies Amidst Middle East Conflict
Jakarta – President Prabowo Subianto is evaluating potential policies to curb fuel oil consumption in response to escalating tensions in the Middle East. The move comes as concerns grow over potential disruptions to global fuel prices and their impact on the Indonesian economy.
Potential Economic Impacts
President Prabowo highlighted the potential for rising fuel prices to affect food prices and overall economic stability during a Plenary Cabinet Session on Friday, March 13, 2026. While Indonesia has secured its basic food supply, proactive measures to reduce fuel consumption are deemed necessary. He emphasized that Indonesia cannot assume it will remain unaffected by global developments and must actively work to mitigate potential risks.
International Examples
Prabowo cited examples of measures taken by other countries, such as Pakistan, to address similar challenges. These include policies implemented during the COVID-19 pandemic, such as work-from-home arrangements for 50% of employees in both the private and public sectors, as well as a reduction in the workweek to four days. As reported by News USA Today, Prabowo presented a slide detailing Pakistan’s response to fluctuating global oil prices.
Pakistan’s Measures in Detail
In addition to work arrangements, Pakistan implemented further cost-saving measures, including salary reductions for cabinet members and members of parliament, with the savings directed towards supporting vulnerable populations. Fuel allowances for all ministries were as well curtailed, with 60% of government vehicles restricted from daily use. Pakistan suspended spending on air conditioning, vehicle purchases, and furniture for all government agencies indefinitely. The country also reduced government travel and prohibited the use of public funds for parties, extending similar measures to higher education institutions through online learning.
Indonesia’s Approach
President Prabowo indicated that these examples are being studied by his staff for potential implementation in Indonesia. He expressed confidence in Indonesia’s economic strength in the coming years but stressed the importance of fiscal prudence and reducing consumption to maintain a stable deficit, with a long-term goal of achieving a balanced budget. Observerid.com reported on the President’s statements following a National Economic Council (DEN) meeting on March 11, 2026, where the impact of the Middle East conflict on Indonesia’s economy was discussed.
Ongoing Monitoring and Mitigation
The Indonesian government remains committed to ensuring a secure national energy supply, with plans to monitor global energy prices and prepare mitigation measures to protect the state budget from volatility. Cabinet Secretary Teddy Indra Wijaya confirmed that the government will continue to monitor developments and implement necessary safeguards.
President Prabowo also recently held phone talks with Saudi Crown Prince Mohammed bin Salman (MBS) to discuss the escalating conflict in the Middle East. Newswav.com reported on the discussion between the two leaders.