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Economy

After raising transportation fares, government prepares a safety net

A man hands over his social welfare card to receive cash at a post office in Jakarta on Tuesday​.

JAKARTA -- Indonesia's government has been busy since raising fuel prices on Monday. The increase -- in the form of a cut in subsidies -- could save the government more than 100 trillion rupiah ($8.2 billion) a year and give it flexibility to invest more in infrastructure. That's the upside. The downside is that the move effectively takes money out of people's pockets. There will be economic consequences.

     To ward off political consequences, the government has to make some counter moves, but in a careful, balanced manner.

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