Weekly Digest: Indonesia to Increase Energy Prices
- President Joko Widodo stated that rising commodity prices are inevitable, following the global trend. High-ranking officials have also publicly disclosed the plan to increase energy prices gradually.
- Energy prices are highly volatile in the midst of the pandemic and the Russo-Ukrainian war. Various international institutions predict that this and next year's energy prices may be higher than last year.
- Some existing policies in Indonesia can prevent domestic energy prices from soaring. Pertamina's strategy to purchase Russian cheap oil may also help despite risks, including supply instability.
- The government is disbursing funds for low-income people through direct cash transfers to compensate for the rising commodity prices. The program will put less strain on the state budget compared to directly subsidizing prices.