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Today's Headlines Komaidi Notonegoro

  • Low Global Oil Prices: Positive or Negative for Indonesia?

    Low Global Oil Prices: Positive or Negative for Indonesia?

    Indonesia turned into a net oil importer in 2004 as domestic oil output declined sharply while domestic fuel consumption surged amid the growing economy (hence becoming more and more dependent on oil imports). Prior to 2016, the Indonesian government provided generous energy subsidies (for fuel and electricity), resulting in a deteriorating budget deficit, trade deficit, current account deficit, and pressure on the rupiah. Moreover, government spending on energy consumption limited room for government spending on productive sectors such as infrastructure and social development.

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