Increasing Gasoline Prices in Indonesia will Affect Transportation Costs

The price of gasoline is forecasted to rise for the second time in two months by early September 2022 due to subsidy reductions. The increasing gasoline price will likely impact transportation costs in Indonesia by 50% in Q4 2022, as diesel contributes around 40% of the total cost of land transport. The government plans to closely monitor the prices of rice, corn, red onions, garlic, chili, sugar, cooking oil, soya beans, beef, chicken, and eggs to ensure price stability in the market.