ASIA

Indonesia to keep fuel subsidies

Voter pressure due to next year's elections has led Indonesia's Energy and Mineral Resources Mini...

Indonesia to keep fuel subsidies

While this pledge will go down well with the majority of Indonesians , the decision is not expected to please the country's international donors who have long called for increased petroleum retail prices to keep Indonesia in line with rising international crude prices.

This decision to raise spending on fuel subsidies was announced following a meeting between Yusgiantoro and representatives from the House of Representatives Budget Committee, the Finance Ministry, and Energy and Mineral Resources Ministry. This move contravenes a national law and still needs to be formally approved in a plenary session of parliament before it can happen.

Yusgiantoro openly admits "the election and other political activities would make it impossible to increase the cost of fuel next year" and the oil and gas director general, Iin Arifin Takhyan, has said the government would be allocating around US$1.73 billion for the subsidies.

Domestic fuel prices have long been a politically sensitive issue in Indonesia and have been the cause of many riots in the late 90s, including a recent anti-government rally earlier this year that forced the Indonesian government to backtrack on utility price increases.

TOPICS:

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

editions

ENB CCS Report 2024

ENB’s CCS Report 2024 finds that CCS could be the much-needed magic bullet for Australia’s decarbonisation drive

editions

ENB Cost Report 2023

ENB’s latest Cost Report findings provide optimism as investments in oil and gas, as well as new energy rise.

editions

ENB Future of Energy Report 2023

ENB’s inaugural Future of Energy Report details the industry outlook on the medium-to-long-term future for the sector in the Asia Pacific region.

editions

ENB Cost Report 2021

This industry-wide report aims to understand current cost levels across the energy industry