Fuel Subsidy Restrictions Expanded Beyond Java and Bali

Aiming to control disbursement of oil subsidies provided by the 2013 State Budget, the Minister of Energy and Mineral Resources has issued Regulation No. 1 of 2013 on Fuel Oil Consumption Control (“Regulation”).

The Regulation is primarily designed to prevent the kind of fuel subsidy shortages that occurred with the 2012 State Budget, when some IDR 82 trillion had to be re-allocated to keep fuel subsidies going that year. Previously, fuel subsidy controls were set by Minister of Energy and Mineral Resources Regulation No. 12 of 2012on Petroleum Fuel Consumption Control (“2012 Regulation”, see ILB No. 1927).