Indonesia: Cheap Gas an Explosive Situation

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September 7, 2005

High oil prices are causing much fiscal pain for the government. The reason is the subsidized price of fuel (about 90 cents a gallon). The government wants to raise the price to about $1.15 a gallon. This would cause major pain for many Indonesians, and the last time it was attempted, in 1998, the resulting demonstrations helped bring down the government.  

 

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