Indonesia raised the price of subsidized fuel by up to 35 percent today, sparking protests.

“The state needs a budget to build infrastructure and fund education and health,” President Joko Widodo said in a speech announcing the increases late yesterday, “but it is not available because the money is wasted on fuel subsidies.”

From midnight early today, fuel prices rose 2,000 rupiah (16 US cents), taking low-octane petrol to 8,500 rupiah a litre and diesel fuel to 7,500 rupiah a litre, a 35-percent increase.

Last night’s announcement was met by student protests in several cities.

In central Jakarta, protesters burned tyres and stopped fuel tankers during a rally that lasted until early today.

The increases are likely to drive up prices for basic commodities.

The government said each of 15.6 million poor and near-poor families would receive a one-off sum of 400,000 rupiah to cushion the impact.

- dpa