Indonesia has consulted the International Monetary Fund on its delay in raising fuel prices, said Economics Minister Kwik Kian Gie. He added that the IMF gave no reaction and Mr Kwik said this means no objection.

Under the letter of intent signed in January, Jakarta has to lift state fuel subsidies. This means that Indonesia has to increase fuel prices of about 12 percent. But on Friday – a day before the scheduled price rise – President Abdurrahman Wahid said the government would delay the move as people are not ready to accept it and mass protests had been planned for Saturday over the increase. The president said the government would review the situation weekly.

Up to 400 students protested outside the parliament house on Friday against the planned price hikes in fuel, electricity, transportation and salaries of top civil servants.

Security in the capital was especially tight with Jakarta's police chief saying that 16,000 officers were mobilised in anticipation of massive demonstrations and possible trouble. The last time the government tried to tinker with fuel prices in 1998, riots broke out.