15 January 2020 (closed)
USD/IDR (13,648) -10.00 -0.07%
EUR/IDR (15,206) -24.81 -0.16%
Jakarta Composite Index (6,283.37) -42.04 -0.66%
The Indonesian government may raise the price of subsidized gasoline for April 2015 as the Indonesian Crude Price (ICP) rose through February and March from USD $52 per barrel to USD $57 per barrel based on data from the upstream oil & gas regulator SKK Migas. After the Indonesian government drastically reduced fuel subsidy spending at the start of 2015, subsidized gasoline prices are now set each month, in line with price fluctuations on the world market. For subsidized diesel the government provides a fixed IDR 1,000 per liter.
The average ICP price in March is used to determine subsidized (low-octane) gasoline prices in April. Apart from the ICP price, the Indonesian government also takes into account the performance of the Indonesian rupiah versus the US dollar. An appreciating US dollar provides inflationary pressures. Up to 24 March, the rupiah slightly depreciated against the US dollar in March.
Indonesian Rupiah versus US Dollar (JISDOR):| Source: Bank Indonesia
IGN Wiratmaja, Acting Director General of Oil & Gas at the Indonesian Ministry of Energy and Mineral Resources, said that the government has not yet decided whether there will be a subsidized fuel price hike per 1 April. However, given the higher crude oil price and US dollar appreciation, it is a serious possibility.