Yudhoyono government launches massive price stabilization

The Yudhoyono government in Indonesia has launched a massive price stabilization exercise ahead of elections this year. Besides slashing fuel prices and electricity tariffs, the lower-income have been promised cheaper food prices. The Indonesian leader justified that the fuel price cuts can sustain the people’s purchasing power and reduce layoffs as the economy slows down. The Yudhoyono administration has also intervened in the market to ensure that basic commodities such as cooking oil, milk, meat and medicines remain affordable to lower-income Indonesians. (January 13, 2009)