• Actual Energy Subsidy Spending by Indonesian Government Well Below Target in 2022. Why?

    Actual Energy Subsidy Spending by Indonesian Government Well Below Target in 2022. Why?

    The Energy and Mineral Resources Ministry of Indonesia reported that government spending on energy subsidies in full-2022 reached IDR 157.6 trillion (or approx. USD $10.5 billion), well below the target that was set by the central government for 2022 (namely at IDR 211.1 trillion or approx. USD $14.1 billion). So, this certainly is good news for the government’s budget balance.

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  • Omnibus Law on Finance; Bank Indonesia Busy Designing the Digital Rupiah

    Omnibus Law on Finance; Bank Indonesia Busy Designing the Digital Rupiah

    At the latest annual meeting of Indonesia’s central bank (Bank Indonesia), this lender of last resort presented a white paper on the digital rupiah (central bank digital currency, or CBDC). Just like what is happening abroad (and likely also in response to the rise of cryptocurrencies), Bank Indonesia is eager to launch a digital rupiah, possibly ultimately aiming to gradually phase out the use of physical money (notes and coins).

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