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Inflation

Jokowi's hard choice: 'Extreme' subsidies or 'political suicide'

Fuel bill may hit 25% in 2022 budget, forcing Indonesia to cut for fiscal health

Indonesian President Joko "Jokowi" Widodo decided to slash fuel subsidies starting Sept. 3, causing price hikes that sparked massive protests. (Source photos by AP and Reuters) 

JAKARTA -- Indonesian President Joko "Jokowi" Widodo appears undeterred from his recent decision to substantially raise subsidized fuel prices despite protesters continuing to take to the streets.

In a hybrid meeting with regional leaders on Monday, Widodo asked them to use parts of their budgets to help the central government cushion impacts of the price hikes -- including by providing financial aid to small businesses and covering increases in food transportation costs in their areas. This is in addition to a combined 33.77 trillion rupiah ($2.26 billion) in direct cash assistance set aside by the Finance Ministry for low-income households and low-wage workers.

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