Increasingly Unrealistic Subsidy Policy
Monday, August 22, 2022
Much evidence has shown that injecting fuel subsidies is becoming increasingly unrealistic. If the government opts to continue, the credibility of its budget can slip even further. Pertamina and the government’s finances will not be able to bear the mounting losses.
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PRESIDENT Joko Widodo will come face to face with a bitter truth. It is impossible for the government to force Pertamina to maintain fuel prices until the end of the year. This is indeed a politically popular policy. However, much evidence has shown that injecting fuel subsidies is becoming increasingly unrealistic. If the government opts to continue, the credibility of its budget can slip even further. Pertamina and the government&rsquo
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