Indonesia expected to sign law that will limit use of subsidized fuel

Indonesia is expected to issue a decree within the month that will limit the use of subsidized fuel, the country’s energy minister said. Jero Wacik, Indonesia’s energy minister, said he has approved a draft that would be sent to the president for his signature. However, he declined to give details on how or when the subsidy curbs will be implemented. The move was anticipated as early as last year, but was delayed. With annual inflation easing to a 21-month low in December at 3.79% and a global economic slowdown likely to keep a lid on world commodity prices, Indonesia’s policymakers may now have room to implement a subsidy cut. Indonesia’s central bank said it saw government limits on fuel subsidies adding 0.72 to 0.94 percentage points to inflation this year. (January 17, 2012)