Cutting fuel subsidies to help Indonesia’s renewable energy plans
Jakarta, Indonesia (source: flckr/ fidzonflickr, creative commons)
Francisco Rojas
21 Jan 2015
The fall in crude oil price and the cut on fuel subsidies give Indonesia a key fiscal advantage. The country should focus on developing renewable energy and geothermal in particular.
Indonesia is reaping great rewards thanks to the current fall in crude oil prices, being a net importer of oil and combined with the drastic cut in the fuel subsidies that the national government is working on, this should give the current administration in Indonesia plenty of room to manouver into a new energy strategy.
According to a local news source, The Jakarta Post, cutting oil subsidies is a good idea in order to reduce the country’s dependance on oil, yet other alternatives must be put in place. The same source “The biggest challenge of the expanding fiscal space is how to direct government expenditure to strategic development programs. We might enjoy the fiscal advantages of the declining international oil price for only a short time, and it is important not to waste this tail wind”
It has been mentioned that geothermal power has massive potential in Indonesia and this might be the best time to give it a definitive push forward.
To read the full article, please follow the link below.
Source: Jakarta Post
