Economists warn that Indonesia's fuel price increases for non-subsidized products could increase reliance on subsidized grades. This raises concerns about potential supply shortages and added strain on the state budget.

Indonesia’s increase in prices for some non-subsidised fuel products could push more households towards subsidised fuel grades, economists have warned, raising the risk of tighter supplies and added pressure on a state budget already trying to contain politically sensitive energy costs. The move by state energy company Pertamina underscores the government’s balancing act: allowing market-priced fuels to rise with global crude costs while shielding subsidised products used by lower-income...