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Indonesia to End Fuel Subsidy By 2027?

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Algo Research Team

Economics | Feb 24, 2025 | Views: 347

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Key Summary:

  • Chairman of National Economic Council proposes to end subsidy
  • The aim is to reduce reliance on imports and create fiscal space
  • Estimated annual savings for the government could reach IDR90tn

The Chairman of Indonesian National Economic Council, Luhut Pandjaitan, has proposed to the government to remove fuel subsidies by 2027 and implement a single fuel pricing system.


Why remove fuel subsidies? Luhut explained that eliminating fuel subsidies could save the state budget by billions of US dollars and create more flexibility for more targeted fiscal spending.

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