But despite years of politicians shying from aggressive cuts for fear of committing political suicide, CIMB sees five reasons SBY may make the cuts his swan song.
The first three come from Indonesia's recent readings on inflation, economic growth and its current account deficit.
Read More Tough juggle ahead for Indonesia's new president
For one, inflation has been relatively contained, declining in July to 4.5 percent on-year from 6.7 percent in June, just a year after subsidized fuel prices rose 22-44 percent , CIMB noted, suggesting the risk is contained. In June of 2013, the government cut fuel subsidies despite street protests, sending July 2013 inflation to a four-year high of 8.61 percent.
Indonesia's current account deficit also remains high – at 4.3 percent of GDP in the second quarter – driven largely by oil imports, CIMB noted.
"Cutting the fuel subsidy will yield more rational fuel usage, thus resulting in a more reasonable oil import figure," it said.
In addition, economic growth is slowing sharply, coming in at 5.12 percent on-year in the second quarter, its slowest since 2009, with the government forced to trim other spending, especially with Middle East tensions spurring oil prices higher, CIMB noted.
Read More Indonesia's Q2 economy grew its slowest since 2009
"Cutting the fuel subsidy would give more fiscal room to the government to spend on infrastructure and thus rejuvenate the economy in the mid-term," the report said.
The next reason comes from the ballooning subsidy bill in the current budget, with the government currently rationing the remaining quota of subsidized fuel.
"The rationing scheme is, at best, set to fail. In a worst-case scenario, the discontent could boil over into public protests. This is arguably not a legacy SBY wants to leave behind after 10 years in power," CIMB said. "Lastly, following the peaceful elections, SBY's popularity is on a high, which is unlikely to be significantly dented by a fuel price hike."