Cost pressure: Traffic during morning rush hour in Jakarta. The Indonesian government’s plan to restrict sales of subsidised fuel could take effect by Aug 17. — Bloomberg
JAKARTA: The government has sent mixed signals over a plan to restrict sales of subsidised fuel starting on Aug 17, as it grapples with fighting air pollution in Jakarta while hoping to save trillions of rupiah in subsidy spending.
Experts believe the move, which currently remains under deliberation, could play into inflation and reduce people’s purchasing power, thereby risking shock to the economy.
