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Indonesia 2015 fuel subsidy spending may be below 140t rupiah

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Indonesia's spending on fuel subsidies may fall below 140 trillion rupiah (S$14.4 billion) in 2015, about half as much as budgeted, the finance minister said on Friday, as Southeast Asia's largest economy moves to divert funding to other sectors.

[JAKARTA] Indonesia's spending on fuel subsidies may fall below 140 trillion rupiah (S$14.4 billion) in 2015, about half as much as budgeted, the finance minister said on Friday, as Southeast Asia's largest economy moves to divert funding to other sectors. "Basically it could drop to below 140 (trillion rupiah). It will be reduced by more than 50 per cent," Finance Minister Bambang Brodjonegoro told reporters.

Indonesia's 2015 budget sets fuel subsidy spending at 276 trillion rupiah.

This year's fuel subsidy bill is also expected to fall below the 2014 budget target of 246 trillion rupiah as global fuel prices have fallen, Brodjonegoro said, but was still expected to be above 200 trillion rupiah.

In his first major economic policy decision, President Joko Widodo last month raised subsidised gasoline and diesel prices by more than 30 percent to help fund his reform agenda and tackle the country's budget and current account deficits.

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