Economic Analysis Series: TRADE AND INDUSTRY BRIEF, August 2022

Because of the ongoing volatility in global oil prices, the government decided to improve the fuel subsidy program (BBM). In the midst of various signals to raise subsidized fuel prices, the government announced an additional Rp 24.17 trillion [1] allocation of social assistance. This month’s Trade and Industry Brief examines the impact of global oil price fluctuations on the burden of fuel subsidies in the APBN, as well as the impact of an increase in fuel prices on inflation, particularly in light of the uncertainty surrounding global food prices. This trade and industry brief also discussed the performance of Indonesia’s trade balance, which recorded a USD 4.23 billion surplus in July, marking the 27th consecutive month of surplus. This policy brief relied on data from BPS, ICE (International Exchange), and other sources.

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