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Fuel Subsidies

Measuring Mega's Mettle

Tuesday, June 1, 2004

Thanks to the world oil price, Indonesia's fuel subsidies will have to rise too. The challenge for the government is whether or not it will be brave enough to increase fuel prices.

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WITH the presidential and vicepresidential election only a month away, President Megawati Sukarnoputri's government faces its toughest test ever. Make no mistake about it, the test that Indonesia's fifth president currently faces is an extraordinarily difficult one. And what makes it so difficult is that the test comes from overseas. Crude oil prices in world markets have rocketed, seemingly out of control. At the close of trading on Friday two

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