WB/IMF to phase out Indonesian fuel subsidies (fwd)

[Robert Weissman <rob@essential.org>]

World Bank devt news 11/22/99

IMF, WORLD BANK ASK INDONESIA TO SCRAP FUEL SUBSIDIES: REPORT. The IMF and the 
World Bank have asked the Indonesian government to phase out fuel subsidies by 
April 1, Dow Jones reports a local newspaper said today. The Bisnis Indonesia 
quoted Indonesian Director-General for Oil and Gas Rachmat Sudibyo as saying 
that in a meeting between the Fund and Bank team and Mines and the Energy 
Minister Susilo Bambang Yudhoyono on Friday, it was agreed that the removal of 
fuel subsidies would be done gradually based on the fuel products.
Rachmat said that the government would likely start by removing subsidies on 
diesel oil and premium gas. The government is facing a dilemma in removing
fuel 
subsidies as it may spark unrest in the country, the story says, but limited 
cash makes it difficult for the government to maintain fuel subsidies.