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30% gasoline price hike in Indonesia

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Staff writer ▼ | November 18, 2014
Indonesian President Joko Widodo announced that gasoline prices will rise by 30.77% and diesel prices by 36.36% to reduce massive fuel subsidies, a first major decision aimed at reviving Indonesia's economy.
Joko Widodo
Subsidies   Indonesian President Joko Widodo:
Speaking at the state palace on Monday night, Widodo said the price of gasoline would increase from 6,500 rupiah ($0.53) per liter to 8,500 rupiah starting Tuesday. He also raised the price of diesel from 5,500 rupiah per liter to rupiah to 7,500 rupiah per liter.

Finance Minister Bambang Brodjonegoro said the government expected to save more than 100 trillion rupiah ($8.2 billion) from the price hike, which will be transferred to boost infrastructure and other programs.

Former President Susilo Bambang Yudhoyono raised the price of gasoline and diesel by 44% and 22% respectively in June 2013.