Monday, May 05, 2008

Down in Smoke

The Indonesian government will get rid of its oil subsidy.

I don't have current figures to hand, but that would mean 10-20% of the budget won't go up in smoke, but could be invested for the future, e.g. education and healthcare.

This is a really positive move. Now if it turned to opening up rice imports (and exports) that would be really positive!!

2 comments:

David said...

except that there are an awful lot of Indonesians living on a razor's edge whose livelihoods are heavily dependent of fuel prices being kept as affordable as possible. They don't have time to live for the future, waiting for better education and health care. They are forced to live for today and today only.

johnorford said...

yeh i agree with u, increasing prices will hit the poor hardest.

oil is a red herring, food prices are hitting indonesia's poor hardest. i wonder how much higher indonesia's rice price is on average compared to global prices?

that's an interesting question.