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Scrapping of Fuel Subsidies a Landmark, Boost for Indonesia

The announcement came without fanfare, in line with Indonesian President Joko Widodo's style, but his decision to let petrol prices float freely is the most significant move to stabilize Southeast Asia's largest economy in years and shows his resolve to promote reform. On January 1, Widodo's government scrapped subsidies for petrol, letting pump prices rise and fall in line with the cost of crude oil. “It took some guts,” said economist Wellian Wiranto at OCBC in...

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