Indonesian President Joko Widodo raised fuel prices to reduce state energy subsidies, moving on an election pledge less than a month after taking office to free funds for development plans. The price of subsidized gasoline was increased to 8,500 rupiah ($0.70) a liter from 6,500 rupiah effective today, and diesel has been raised to 7,500 rupiah a liter from 5,500 rupiah, after an announcement by Widodo in Jakarta late yesterday. The central bank will hold an unscheduled monetary policy review today, spokesman Peter Jacobs said. The rupiah and local stocks rallied today on optimism that Widodo, known as Jokowi, is taking steps to overhaul Southeast Asia ’s largest economy. While falling oil costs gave the president room to limit the fuel price increase, his government has yet to say if it will revamp or scrap the decades-old subsidy system beyond changing prices. “This was a […]