Indonesia - 01

Indonesia: Reduced Gasoline Subsidies Test Widodo’s Resolve

In late March the Indonesian government increased the price of subsidized gasoline from $0.52/liter to $0.56/liter, raising it by 500 Indonesian rupiahs (IDR). Energy Minister Sudirman Said explained that the actual market value of gasoline is $0.61/liter (IDR7,900) and that the depreciation of the rupiah against the US dollar necessitated the price increase. The minister emphatically ruled out the possibility of returning to lower subsidized prices.

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