Jakarta – An expected fresh cash injection from windfall profits from oil exports will allow the government to afford a soaring allocation for fuel subsidies from the state budget, a minister says.

Energy and Mineral Resources Minister Purnomo Yusgiantoro said over the weekend the country was expected to receive extra income of Rp 71 trillion (US$7.7 billion) because of adjustments to the oil price assumption in this year's budget revision.

The House of Representatives and the government have recently agreed to raise the oil price assumption to $95 a barrel from $60 a barrel.

Purnomo said the country would enjoy a profit of Rp 3.34 trillion for every dollar increase in global oil prices based on an assumption that a dollar is worth Rp 9,050.

He said income from oil exports would reach a total of Rp 270 trillion, up by almost 35 percent from the original estimate.

"State income from the energy sector will be around $30 billion this year, and half of it will be allocated for fuel subsidies," Purnomo said as quoted by Antara news agency.

The House and the government also recently agreed to allocate Rp 126.8 trillion for fuel subsidies in this year's budget revision, almost triple the current Rp 42.08 trillion allocation.

Despite continuing membership as an oil exporter in the Organization of Petroleum Exporting Countries, over the past couple of years, Indonesia has become a net importer of oil owing to rising domestic demand and declining production.