The Indonesian government’s policy of providing subsidies to shield the public from the effects of global energy price hikes will burden the state budget. It’s also potentially insufficient to protect the poor.
To reduce the impact of global price hikes, the government decided to more than double its energy subsidies to help people pay for fuel and electricity. It is also planning on disbursing a total of Rp 24.17 trillion (US$1.63 billion) of social assistance, which includes wage subsidies for those earning Rp 3.5 million a month (US$235.65) or less.
