Bali – Indonesia's moves to reduce earlier announced rises in fuel prices were very understandable and would not compromise its goals of keeping its budget deficit under control, an IMF official said on Tuesday.

A World Bank official said separately he thought there was an understanding spirit among donors at the Consultative Group on Indonesia meeting here.

"Given we are at a time where world oil prices are temporarily very high ... it's very understandable the government would decide to smooth the adjustment of domestic prices," Daniel Citrin, IMF Senior Adviser Asia and Pacific Department, told reporters on the meeting sidelines.

"I would note that the government's decision will not compromise the budget deficit," he added.

World Bank Indonesian country director Andrew Steer, asked how he thought donors would respond to the prices roll-back, told reporters: "I think there's a very understanding spirit here in general."