Indonesia indicates fuel price hike not on agenda at energy subsidy meeting this weekend | Insider news
(The Insider Stories) — Indonesia will announce a fuel subsidy adjustment this weekend at a coordinating meeting led by the President but indications are that a fuel price hike isn’t on the agenda.
“In the meeting with the president we will explore more deeply our options,” Finance Minister Agus Martowardojo said after a meeting with the Coordinating Economic Minister. Deputy energy minister Susilo Siswoutomo added there is no plan to increase premium gasoline prices.
The meeting aims to reduce oil and electricity subsidies in order to improve fiscal health. The government forecasts oil and electricity subsidies to reach IDR300 trillion ($30 billion) this year, bloating the budget deficit.
The governmen has three options to pick: banning private cars from using subsidized fuel; raising premium prices, and controlling fuel use via an electronic monitoring system.
