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inally, we have a leader willing to take the plunge and increase fuel prices, even if it means risking his political popularity. Barely a month since his inauguration, President Joko '€œJokowi'€ Widodo announced on Monday his decision to raise the price of gasoline and diesel fuel by an average of 30 percent.

That the government had to raise fuel prices was widely known, although not necessarily accepted. The fuel subsidy had gotten so out of control that it was starting to bleed the economy and undermine investor confidence.

Former president Susilo Bambang Yudhoyono was unwilling to make the politically risky decision in an election year. He raised the subsidy instead, leaving Jokowi to deal with the impending fiscal crisis as soon as he moved into office on Oct. 21.

Raising fuel prices then became more a question of when and by how much. Both were answered on Monday night.

To his credit, Jokowi has prepared the ground well. In addition to the massive public campaign on the need to phase out the wasteful fuel subsidy, he launched his '€œe-card'€ social welfare programs entitling the poor to various government assistance. He set up a team to study ways of reforming the oil sector, notorious for corruption and gross inefficiency.

The President overcame objections from politicians, not only from the opposition coalition that controls the House of Representatives, but also from within his own ruling coalition, particularly the Indonesian Democratic Party of Struggle (PDI-P).

We'€™ll know in the next few days whether he has done enough to convince the public. There will be protests, some out of real fears about the impact on livelihoods, but many will be politically motivated as Jokowi'€™s detractors exploit the situation.

The fuel-price increase will inevitably impact the lives of many people, directly and indirectly through the inflationary effect. The poorest of the poor may be shielded by Jokowi'€™s social programs, but the lower middle class will bear the brunt of the effects. Keeping inflation in check will go a long way in helping them cope with the impact.

After the dust has settled, President Jokowi must look for ways of reforming not only the way the country'€™s oil and gas sector is managed, but also the mindset that treats oil as a political commodity. Indonesia, which imports most of its oil needs, has to start paying market prices for its gasoline, like much of the rest of the world.

Even after the price increase, the fuel subsidy bill remains large. It is money that Jokowi knows can be better spent on social programs and infrastructure projects. Unless the government phases out the subsidy once and for all, we will be back in the same situation in a year or two, facing another fiscal crisis and debating and fighting about fuel prices.

President Jokowi has shown his leadership and character by raising fuel prices. He may have been popularly elected, but he was elected to do the right thing. That often means doing unpopular things.