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Jakarta Post

Indonesia braces for rising oil prices

  • Anton Hermansyah

    The Jakarta Post

Jakarta   /   Tue, May 1, 2018   /   11:30 am
Indonesia braces for rising oil prices A worker prepares to fill the fuel tank of a vehicle at a gas filling station in Jakarta. The government is bracing for the impact of the rising oil prices, which will increase the price of fuel and likely lead to a hike in prices of other goods. (Kompas.com/-)

As oil prices continue to rise, the government is set to push for more subsidies for those in need in an attempt to stabilize the economy.

Finance Minister Sri Mulyani Indrawati said that the rising price of oil would put pressure on the economy as a hike in fuel prices would likely lead to a hike in prices of other goods. On the other hand, the government would obtain more revenue from oil exports and tax.

"We will redistribute the additional revenue from the oil and gas sector to the poor who will be affected the most by the rising prices," she said during a press conference with the Financial System Stability Committee (KSSK) at the Bank Indonesia (BI) office in Jakarta on Monday.

She added that the government had increased the number of beneficiaries of the Family Hope Program (PKH) to 10 million families compared to 6 million in 2017. The number would be further increased to 15 million in 2019.

"We will increase government intervention for the poor so they can get access to health care and education," she said.

The price of oil has continued to increase. As of Monday, the price at the West Texas Intermediate (WTI) had increased by 11.5 percent to US$67.37 per barrel. Meanwhile, the Brent price increased by 10.13 percent to $73.65 per barrel. (dwa)