Solving the Fuel Dilemma

THERE are two sides to this country’s energy policy. Gas and coal exports are a mainstay of government revenues. In terms of spending, fuel and electricity subsidies are the largest item in the State Budget. Last year, for example, electricity subsidies totaled more than Rp60 trillion.

The revival of oil prices mean subsidies will continue to rise. Unfortunately, increases in the price of coal and gas, which tend to follow those of oil, do not

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