17 February 2020 (closed)
USD/IDR (13,676) -17.01 -0.12%
EUR/IDR (14,805) -37.58 -0.25%
Jakarta Composite Index (5,867.52) +0.58 +0.01%
Today (15/06), it was reported in Indonesia's media that the government will announce details regarding the new price of subsidized fuel on Monday (17/06) after a plenary session of the House of Representatives (DPR). The Union of Indonesian Workers (Konfederasi Serikat Pekerja Seluruh Indonesia) has announced that it will stage a large demonstration on 17 or 18 June at the DPR/MPR building (the seat of the government) in Indonesia's capital city as well as smaller demonstrations in various cities across the archipelago.
The issue of the subsidized fuel price hike has been ongoing for many months. The Indonesian government spends a large portion of its subsidy budget on fuel subsidies. But due to robust and increasing fuel demand in combination with Indonesia's declining oil output, it has resulted in expensive oil imports that seriously burden the government's current account. The downside of raising the price of subsidized fuel is that it will trigger high inflation and social unrest.