Indonesian students and other protesters went on the rampage in several cities yesterday just hours after a fuel price increase.

At Universitas Nasional in South Jakarta, students and fellow protesters hurled Molotov cocktails, burned old tyres and clashed with police.

Indonesian police fired tear gas and arrested 140 people, mainly university students. Another 26 protesters were detained at a violent rally outside the presidential palace.

In Surabaya, Indonesia's second largest city, students hijacked a tanker belonging to state oil and gas company Pertamina. In Bandung, a hardline Muslim group - Hizbut Tahrir - led protests.

Yogyakarta and Semarang also saw demonstrations..

Police came down hard on the students. 'We had to stop the anarchy,' said national police spokesman Abu Bakar Nataprawira.

Presidential spokesman Andi Mallarangeng also defended police actions.

'You cannot demonstrate in the middle of the night, hurling Molotov cocktails at the police and burning tyres,' he said.

Analysts said demonstrators were frustrated that the government had ignored earlier protests and gone ahead with the price hike.

'People are disappointed with this unpopular policy,' said analyst Arbi Sanit of the University of Indonesia.

Adding to the frustration was a promise by President Susilo Bambang Yudhoyono late last year not to raise fuel costs until after elections next year.

But with crude oil prices topping US$130 (S$177) a barrel this week, the government had little choice but to raise prices in order to slash subsidies that keep the price of fuel artificially low.

The subsidies were introduced by the late president Suharto three decades ago, and have kept fuel prices in Indonesia among the lowest in Asia - even after yesterday's price hike.

To alleviate the increased burden on about 19 million poor families, the Indonesian government started distributing cash handouts yesterday.

But many ordinary Indonesians who are used to subsidised fuel fear that the price hike will have a knock-on effect, pushing up the price of basic foodstuffs, education fees and transport fares.

Malaysia, meanwhile, has no plans to raise pump prices of petrol and diesel fuel subsidies, a minister said yesterday. That could cost the government a record RM50 billion (S$21.2 billion) this year.

Instead, it will try to better manage its subsidy scheme to prevent abuse, Domestic Trade Minister Shahrir Samad said.

Analysts believe that with inflation running at a 15-month high in Malaysia, the government is unlikely to allow higher fuel prices because of plummeting support for ruling coalition Barisan Nasional.

salim@sph.com.sg