Indonesia gives 44% fuel price rise nod
Indonesia has approved a controversial fuel price rise to slash its ballooning subsidy bill
The move, approved by parliament, will see gasoline prices increase by 44% from 4,500 rupiah ($0.45) per litre to 6,500 rupiah/l, while diesel will edge up 11% to 5,000 rupiah/l, according to data from IHS Global Insights. Analysts at Nomura have estimated that the proposed price rise would trim the subsidy bill by 60 trillion rupiah to 228 trillion rupiah this year. But despite cash handouts to mitigate the effect on the poor, nationwide protests could still derail the plan, which has yet to be formally implemented by President Susilo Bambang Yudhoyono. Subsidies are driving demand, but as international crude prices trended higher, have depleted the state budget. The bill has risen dramatic
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