The Establishment Post
30 October 2014
- RSIS
- Media Mentions
- Impediments to Indonesia Fuel Subsidy Reform under President Jokowi
Impediments to Indonesia Fuel Subsidy Reform under President Jokowi
Despite having won the president and vice president posts respectively, Joko Widodo and Jusuf Kalla will possess little control, if at all, on the formulation of the next state budget for fiscal year 2015/2016. One particular issue that concerns the new administration is the large portion of funds for energy subsidies, particularly fuel subsidies.
To ensure his administration would have more fiscal space to fund new government projects and minimise the budget deficit, President Jokowi has proposed to outgoing President Yudhoyono to increase the price of subsidised fuel as his final policy gesture before stepping down. President Yudhoyono turned down the request on the ground that increasing the price of subsidised fuel would aggravate the economic burden on the people.
…This article was written by Keoni Indrabayu Marzuki, a research asociate of the Indonesia Programme at the S. Rajaratnam School of International Studies (RSIS), Nanyang Technological University. It was originally published on the RSIS site and reproduced here with their kind permission.
RSIS / IDSS / Online
