Indonesia is weighing policy response options as oil prices tick above $100 per barrel, which is inflating subsidy costs and weighing on the state budget, AFP reported on March 17.

The conflict in the Middle East is disrupting energy supply flows through the Strait of Hormuz, pushing global prices well above Indonesia's $70 per barrel budget assumption. At the same time, Subianto's push for faster economic growth — driven by heavy government spending — has left the state budget with less room to absorb shocks.