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Indonesia Eid Travel Fuel Crunch Hits 140M Travelers

Financial Times Companies •
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Indonesia faces mounting fuel anxiety as 140 million people prepare for Eid-al-Fitr travel amid soaring oil prices and Middle East supply disruptions. Farah Fauzia, like millions of Indonesians, has scaled back family celebrations from a rented villa to her grandmother's home near Jakarta, citing concerns about potential gasoline shortages.

President Prabowo Subianto's government insists fuel reserves are adequate with about 25 days of supply at the conflict's start, though this falls far short of neighbors like Thailand's 95-day reserves. The transportation ministry expects slightly fewer travelers this year at 143.9 million, reflecting economic slowdown concerns. Energy minister Bahlil Lahadalia claims supplies remain stable, but industry groups warn consumption could double or triple during the holiday period.

With Indonesia consuming 1.5 million barrels daily and importing half its oil needs through the Strait of Hormuz, the timing creates significant vulnerability. Businesses and economists warn that any supply crunch could compound existing economic pressures including weaker purchasing power and factory closures. The government faces a delicate balance between maintaining fuel subsidies crucial for the population and managing budget strains from higher oil prices.