Indonesia is set to raise subsidised fuel prices in June for the first time since 2005 and introduce petrol rationing to overcome a ballooning subsidies bill and declining market confidence, the country’s finance minister said on Wednesday.

Sri Mulyani Indrawati told the Financial Times that if present trends continued the government expected to raise government-set prices by about 30 per cent and introduce a smart card system to limit fuel purchases to 60 litres per month per vehicle.