Indonesia’s Pertamina is seeking government approval to divest assets to help shield the state energy company from rising crude oil prices and a rupiah that is at its lowest level in more than 2-1/2 years.

While higher oil prices have yielded Pertamina better returns from its oil and gas output, they have also increased the fuel bill for the net oil importer, especially amid the slumping rupiah.

Indonesia has promised not to raise some consumer fuel and electricity prices ahead of elections in 2019, but the populist policy has also dented Pertamina’s finances and cut its means of spending on much-needed infrastructure.

The government, which sets Pertamina’s fuel prices, wants to guard Pertamina’s finances from crude prices that are expected to climb 46 per cent above the $48 per barrel assumed in this year’s budget, and a 7 per cent weakening of the rupiah IDR= against the dollar this year.

Pertamina wants to divest to help maintain its long-term financial condition, and to avoid risking too much in any one particular asset class.