Sign up | Log in



Home  >>   Daily News  >>   Indonesia  News  >>   Energy  >>   Fuel Subsidy Ban’s Fate to Be Decided Today
NEWS UPDATES Asean Affairs        8  March 2011

Fuel Subsidy Ban’s Fate to Be Decided Today

Related Stories

February 28, 2011
Controversial late night Indo rate cut planned

February 10, 2011
Coal gasification plants rise in Indonesia

February 8, 2011
No more delays for Indonesian coal shipments

February 3, 2011
Indonesia urged to up oil price estimate

February 2, 2011
Transparency in Indo oil, gas sector

January 22, 2011
Indonesian utility questions power cap

The government is set to decide today on whether to go ahead with its planned ban on private drivers using Premium fuel or find another way to cut its mounting fuel subsidy burden.

Coordinating Minister for the Economy Hatta Rajasa said on Monday that together with House Commission VIII, which oversees energy affairs, the government would discuss a range of options. “[On Tuesday] you will know the result,” he told reporters in his office in Jakarta.

The government’s current plan is to restrict the sale of subsidized Premium fuel only to motorcycles and public transportation vehicles starting in Jakarta on April 1 and extending nationwide later this year and in 2012.

The plan is aimed at cutting and eventually removing subsidies, which this year were earmarked to reach Rp 96 trillion ($10.9 billion) based on an average oil price of $80 per barrel. Last year’s budget allocation was Rp 89 trillion.

But soaring oil and food prices and high inflation have led the government to suggest it may delay or cancel the plan, which has already been postponed twice.

Anggito Abimanyu, a former senior financial official leading a government-appointed academic team to review options available to curb fuel subsidies, said that the net impact of rising oil prices on subsidies was about Rp 700 billion for every $1 per barrel price increase. Mideast unrest has pushed the international price of oil up about $20 to $105 a barrel in the past three weeks.

On Monday, Hatta said Anggito’s team had handed its research to his office and would present it to lawmakers on Tuesday.

He said the team suggested three alternatives to the private-car ban: raising the price of the subsidized fuel but refunding the difference for public transport operators; going ahead with the ban but capping the price of non-subsidized fuel; and rationing subsidized fuel.

“The first option is to raise the price of subsidized fuel by Rp 500 a liter and then give [Rp 500] cash back to public transport, so in reality they don’t have to raise their tariff,” said Anggito, adding that the team suggested using debit cards issued by banks for the refund mechanism.

“The second option is to cap non-subsidized fuel at Rp 8,000 a liter. That was based on our survey on the purchasing power of Pertamax consumers,” Anggito said.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    8  March 2011 Subsribe Now !
• Cambodian villagers halt land clearing
Subcribe: Asean Affairs Global Magazine
• Fuel Subsidy Ban’s Fate to Be Decided Today Asean Affairs Premium
• Miners say Indo value-added law will hurt

• High-speed KL-Singapore rail to be studied

Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Philippines forex reserves jump

• Japan advises Thailand to boost labor skills

• Thai women rise in business world

• Vietnam sets Mekong Delta priorities

Asean Analysis    7   March 2011 Advertise Your Brand
• Economic pressures raise political tensions Sponsor Our Events
Asean Stock Watch    8  March 2011
• ASEAN to Hold Gains
Global News Impacting Asia    17 November 2010
• Bank of America sees Asian inflation
• Lloyd’s increases insurance push in Malaysia
• Wells Fargo analyst on euro
• Obama’s visit to Asia

ASEAN NEWS UPDATES      Updated: 04 January 2011

• Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand