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Indonesian President Jokowi announces fuel price hikes affecting gasoline and diesel - Global Banking & Finance Review
President Joko Widodo announces a significant increase in fuel prices in Indonesia, shifting subsidies to infrastructure development. This decision impacts gasoline and diesel costs.
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INDONESIAN GOVERNMENT RAISES FUEL PRICES

Published by Gbaf News

Posted on November 18, 2014

1 min read
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Energy Asia-Pacific

Indonesian President Announces Fuel Price Hike

JAKARTA, Indonesia (AP) — Indonesia’s president has announced a sharp increase in fuel prices, saying costly government subsidies would be better spent on infrastructure and development.

President Joko “Jokowi” Widodo announced the price hikes at the state palace on Monday, flanked by economic and social affairs ministers.

Details of Gasoline and Diesel Price Increases

The price of gasoline will be raised from about 53 cents to 70 cents per liter, and diesel fuel from 45 cents to 61 cents.

Government's Rationale Behind Subsidy Changes

Jokowi said it was a difficult choice, but that the government finally decided after a series of discussions to switch the subsidies to productive investment.

Key Takeaways

  • President Jokowi announced a substantial fuel price hike to reduce costly subsidies.
  • Gasoline price increased from US$0.53 to US$0.70 per liter; diesel from US$0.45 to US$0.61 per liter.
  • Subsidy savings are to be redirected toward infrastructure and development projects.
  • The decision was framed as difficult but necessary after extensive deliberations.

References

Frequently Asked Questions

Why did the Indonesian government raise fuel prices?
To reduce costly subsidies and redirect funds into infrastructure and development investments.
How much did fuel prices increase by?
Gasoline rose from about US$0.53/L to US$0.70/L; diesel rose from US$0.45/L to US$0.61/L.
Who announced the price hike?
President Joko “Jokowi” Widodo announced it at the state palace, alongside economic and social affairs ministers.
Was this an easy decision for the government?
No, President Jokowi described it as a difficult choice undertaken after a series of discussions.

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