The cancellation of the increase in the price of Premium gasoline could lead to a further widening of the current account deficit. Pertamina is shouldering increasingly heavy burden.
The government’s decision not to go ahead with the increase in the price of Premium gasoline shortly after announcing the planned rise last Wednesday shows the poor nature of policymaking. The markets could lose confidence in Indonesia and view this inconsistency as an inability of the government to take decisions in a crisis.
Raising fuel prices is one measure the government must take to improve the problems with the current account. Acco...