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Jakarta (ANTARA News) - Indonesian shares are expected to open lower on Monday on fears that the fuel price hike could trigger violent protests.

On Saturday the Indonesian government raised the cost of fuel by around 30 percent in response to soaring global oil prices and a ballooning subsidy bill. Motorists are now paying 33.3 percent higher for premium gasoline and 27.9 percent for diesel fuel.

Poor families who still use kerosene for cooking must pay 25 percent more for a liter of kerosene.

"Let's see how the reaction is this week. I think the market is going to be weak," analyst at AAA Securities Bagus Hananto told Thomson Financial.

Thousands of students and members of a labor union are planing to stage protests Monday in front of the presidential palace and parliament.

"Given that we will have general elections next year, the fuel price hike could have some political implications," Hananto said.

As far as the economy is concerned, he said the government is doing the right thing to ease the impact of rising global oil prices on the state budget since the government will need to spend more on fuel subidies without a price increase.

Hananto said investors seem to have priced in the expected surge in inflation, which may force the Indonesian central bank to further increase interest rates in coming months.

On Friday, the composite index closed down 38.0 points or 1.5 percent at 2,465.96 on volume of 6.53 billion shares worth 7.2 trillion rupiah.

The rupiah was trading at 9,240/9,245 to the dollar on Monday against 9,320/9,325 late Friday.

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