The Indonesian government has reduced fuel subsidies and the rise in fuel prices has been met with some resistance.
Author Diane Francis discusses global oil prices
Meanwhile analysts and rating agencies praised the move, saying it will be crucial for the country’s economic future.
Many Indonesians are worried that the increase in fuel prices will lead to inflation. Economists, however, are urging them to look at the big picture.
The fuel subsidy cut in Indonesia comes at a time where global oil prices are down, but Indonesia’s fuel subsidy bill was already high compared to those of other countries. The Finance Ministry predicts that the move will save $9.8 billion annually, which could reduce Indonesia’s current account deficit by at least $2 billion.
CCTV America’s Andy Saputra reported this story from Jakarta, Indonesia.
Indonesians concerned about rising oil pricesThe Indonesian government has reduced fuel subsidies, and the rise in fuel prices has been met with some resistance. Analysts and rating agencies praise the move, however, saying it will be crucial for the country's economic future. CCTV's Andy Saputra reports.
The rise in oil prices has also affected African economies. The Nigerian government has announced measures to help cushion Africa’s largest economy against the impact of a drastic fall in crude oil prices.
Finance expert Johnson Chukwu said that Nigeria, Africa’s largest oil producer, should prepare for a further fall in prices. The situation has forced the government to revise its budget for next year, and has also brought back a familiar debate about moving Nigeria’s economy beyond oil production.
CCTV’s Deji Badmus reported this story from Lagos, Nigeria.
Nigeria works to stem impact of falling oil pricesThe Nigerian government has announced measures to help cushion Africa's largest economy against the impact of a drastic fall in crude oil prices. CCTV's Deji Badmus reports.
For more on oil’s decline, Diane Francis joined Biz Asia America from Toronto. Francis is the author of Merger of the Century: Why Canada and America Should Become One Country.
Follow Diane Francis on Twitter @dianefrancis1