Indonesia Doing Away With Gas Subsidies

The video discusses the Indonesian government's response to fluctuating fuel prices, focusing on the reduction of fuel subsidies to free up funds for development. The Energy and Mineral Resources Minister outlines plans to increase capital expenditure to boost economic growth. The government has scrapped the high-cost premium gasoline subsidy, significantly reducing the budget allocation for fuel subsidies. Despite these changes, stable food prices and public transport fares remain unaffected, although inflation rates have increased. The overall impact of these reforms is a more sustainable fiscal policy with reduced expenditure on subsidies.

What was the main reason for the government to adjust development spending plans?

• To improve public transportation

• Due to fluctuating fuel prices

• To increase foreign investments

• To reduce inflation

Which type of fuel subsidy was removed by the government?

• Natural gas subsidy

• Premium gasoline subsidy

• Kerosene subsidy

• Diesel fuel subsidy

By what percentage did the government plan to reduce fuel subsidy spending?

• 80%

• 75%

• 60%

• 50%

What was the impact on food prices and public transport fares after the fuel price increase?

• They increased sharply

• They fluctuated unpredictably

• They remained stable

• They decreased significantly

What was the recorded year-on-year inflation rate for December?

• 10.25%

• 2.46%

• 5.32%

• 8.36%