Hanoi (VNA) – Indonesia will maintain its fuel subsidy policy to keep domestic fuel prices stable through the end of this year, despite rising fiscal pressure caused by currency fluctuations, according to Indonesian Deputy Minister of Energy and Mineral Resources Yuliot Tanjung.
The official said amid concerns over supply stability during currency volatility, Indonesia’s national fuel reserves and foreign exchange reserves remain stable.
The rupiah has recently come under significant pressure, falling to 17,877 IDR per USD, increasing strain on the budget allocated for subsidies.
Amid escalating conflict in the Middle East, which has disrupted shipping through the Strait of Hormuz and pushed global energy prices higher, the Indonesian government has announced a series of transport and fuel policies aimed at ensuring macroeconomic stability and containing domestic costs.
It currently allocates around 210 trillion IDR (12.3 billion USD) for energy subsidies./.
