Petroleum imports are significant and subsidies on domestic fuel consumption absorb a high proportion of government expenditure. This makes Indonesia vulnerable to increases in international petroleum prices. Between September 2007 and May 2009 the international price of petroleum rose by around 114% (Figure 4.3). This scenario assumes a similar increase (+114%) in the international fuel price. Since rates of fuel subsidy are assumed to remain constant as petroleum prices rise, the international price increases are transmitted to domestic petroleum product prices, and hence domestic petroleum prices also rise by 114%.