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Change in Fuel Subsidies

Change in Fuel SubsidiesChange in Fuel Subsidies

Indonesia will cap the diesel subsidy and scrap aid for gasoline beginning January 1, the biggest changes to a decades-old system that has tied up budget funds and bloated energy imports, Bloomberg said. President Joko Widodo’s government will implement a fixed diesel subsidy of 1,000 rupiah ($0.08) a liter effective Jan. 1, Energy Minister Sudirman Said told reporters in Jakarta Wednesday. The subsidy for gasoline will be scrapped, said Sofyan Djalil, coordinating minister for economic affairs. The government will pay gasoline distribution costs for areas outside of Java, Madura and Bali, Said explained.

Financialtribune.com