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View all search resultsThe government aims to bring down the sulfur content in fuels sold in the country to no more than 50 parts per million (ppm), from the current approximately 500 ppm for gasoline and up to 3,500 ppm for the lowest grade of diesel.
Statements from the finance minister and a budget planning document suggest the government may cut energy subsidies and compensation next year in a move analysts say would create fiscal space for the incoming administration to pursue new policies.
The Jokowi administration has passed a Health Law that eliminates mandatory minimum spending in the sector, which does not bode well for either the nation's health system or the people's right to help, especially in a post-pandemic world.
A balanced approach to reallocating subsidies from fossil fuel to electric cars as part of a comprehensive strategy to de-incentivize the former and incentivize the latter will help drive the country's EV transition toward a greener and more sustainable future.
The more than 10 percent increase in fuel subsidies and the continued use of a fixed fuel-pricing mechanism not only would negate all the government’s commitment to a faster transition into clean and renewable energy, but also make the fiscal management highly vulnerable to the highly volatile international oil prices.
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