ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Climate Change

Indonesia backtracks on cleaner gasoline plan over inflation fear

Pertamina to keep selling regular fuels, defying country's zero-carbon pledge

Indonesia subsidizes regular-grade gasolines to keep prices low. Last year, fuel subsidies, including for diesel, electricity and liquefied petroleum gas, reached 142 trillion rupiah ($9.9 billion)   © Reuters

JAKARTA -- Indonesia's move toward cleaner energy has hit another stumbling block, with the government backtracking on a plan to scrap regular and medium-grade gasoline products with high carbon emissions.

President Joko Widodo on Dec. 31 signed a regulation allowing state-owned oil and gas giant Pertamina to continue selling low-octane regular and medium-grade gasoline products called Premium and Pertalite, following a public outcry in recent weeks over rising prices for everything from chili peppers and eggs, to cooking oil and cooking gas.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more