Скачать или смотреть CNBC Tonight: Indonesia unveiling new policy package | Aug 31, 2008

CNBC Aug 31 Indonesia unveiling new policy package

A delay in Indonesia to unveil its latest package of measures to restore confidence in economy and prop up the ailing rupiah. Government will raise fuel prices soon and banks will raise interest rates again if the need arises.
Finance minister confirmed that there will be a new fuel subsidy policy announced soon. Indonesia imports large amounts of energy and sells oil products domestically below market price and record-high oil prices acted as a triple whammy in Indonesia hurting its economy, currency and budget.

Simon Littlewood, President of Asia Now quotes,
Indonesia is more vulnerable than any other emerging economy to the fuel price issue. They use a significantly high proportion of gasoline and power generation than most of the other emerging economies.
The government undertook in the early part of this year to make significant changes based on a reduction in fuel subsidies. Basically, it took about 29% off. It still sells gasoline about 23cents/liter less than half the price which makes its 3rd cheapest in the world after Saudi Arabia and Iran.