- Global oil prices are rising again, but the government allocated much less generous subsidies and compensation outlays for 2024.
- Pertamina’s proposal to abolish Pertalite and replace it with (bioethanol-blended) Pertamax Green can help deal with the situation with relatively smaller inflationary impact.
- Pertamax Green simply substitutes (partially) imports of oil with ethanol in the short-term, but there is a conceivable route to scale up ethanol production at home.
- The ratio of coal/oil prices are still on a downtrend amid China’s economic malaise, and the current account deficit may thus prove to be more persistent.
