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524

Indonesia Fuel Subsidy Greatly Increased

Indonesia's fuel subsidy this year may jump to $11.5 billion

Indonesia's fuel subsidy this year may jump to $11.5 billion, 46 percent higher than estimated, due to surging global oil prices and higher consumption, Finance Minister
Jusuf Anwar said in Jakarta.

?Consumption of fuel has exceeded the target by more than 10 percent in the first half,'' Anwar said. ?The government is reviewing its subsidy policy.''

Surging fuel subsidies will widen the budget deficit, Anwar said. Indonesia subsidizes gasoline, diesel and kerosene to make them affordable for its 238.5 million people, out of which 40 million are without work or steady jobs. The government has raised prices and taken measures to cut fuel consumption to lower its subsidy bill.