Jokowi’s Sea of Troubles

A month and a half before Indonesia’s president-elect Joko “Jokowi” Widodo takes office, he already faces considerable headwinds and is not getting much cooperation from outgoing President Susilo Bambang Yudhoyono, who leaves office on October 20. Last week, Yudhoyono refused to cut fuel subsidies, a political third rail that Jokowi had asked for help over. Jokowi had proposed a 50/50 split with Yudhoyono, raising the price of fuel by Rp 1,000 now and a further Rp 1,000 under his watch in November, which would bring the price of premium gasoline to the equivalent of about 75 US cents per liter, still well below global prices.

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