Indonesia considers commodity taxes as oil prices rise
Indonesia may tax commodities to manage its budget as high oil prices threaten the 3% deficit limit. Officials are considering austerity to ensure stability.
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The government of Indonesia is preparing for potential fiscal strain as sustained high global energy costs threaten to push the national budget deficit beyond its legal limit. Senior economic minister Airlangga Hartarto indicated on Friday that the administration may introduce new taxes on key commodities to mitigate the budgetary impact of rising oil prices.
