Analysis of The Impact of Fuel Subsidies on Political Stability and The Legitimacy of The Indonesian Government

Abstract

This research examines the relationship between Indonesia’s fuel subsidy policy and the legitimacy of government authority amid the ASEAN energy crisis. While several ASEAN countries experienced significant fuel price increases following global energy price volatility, Indonesia maintained relatively stable domestic fuel prices through substantial state intervention and energy subsidies. This study employs a qualitative descriptive-analytical approach based on secondary data collected from government policy documents, official statements, reports from international institutions, academic publications, and relevant media sources covering the 2022–2026 period. The data are analyzed from a political sociology perspective, particularly Weber’s concept of legitimacy and Skocpol’s perspective on the state's role in controlling essential resources. The findings show that fuel subsidies function beyond their economic role of protecting purchasing power and controlling inflation. They also operate as a mechanism of state-society relations by demonstrating the government’s capacity to respond to citizens’ basic material needs during an external economic crisis. This responsiveness can contribute to public acceptance and reinforce the perceived legitimacy of government authority. Nevertheless, the policy creates a tension between short-term social and political stability and long-term fiscal sustainability, particularly due to inefficient targeting and the risk of public dependence. The study therefore argues that fuel subsidies should be understood as both an economic intervention and a political instrument through which the state manages social stability, distributes essential resources, and maintains political legitimacy during periods of crisis