Jokowi's Commitment to Cutting Subsidies

During the first five years of President Joko Widodo's administration, energy subsidies were significantly cut, as promised in his 2014 campaign. Energy subsidies, which previously soared to Rp 350 trillion, were slashed to just Rp 119 trillion at the beginning of his administration.

By the end of his term, which concludes on October 20, 2019, the average annual energy subsidy over five years is estimated at Rp 129 trillion. This is lower than the average of Rp 241 trillion during the second term of President Susilo Bambang Yudhoyono's administration.

Read: Different Governance Styles of Jokowi and SBY

The macroeconomic conditions during the Jokowi-Jusuf Kalla administration differed significantly from those experienced by the Susilo Bambang Yudhoyono-Boediono administration. At the start of SBY's administration, the global crude oil price was at its peak. Unsurprisingly, energy subsidies also reached their highest point in 2008.

At that time, oil prices briefly surged to US$146 per barrel in July 2008. The Indonesian Rupiah was also under pressure in the aftermath of the 2008-2009 global financial crisis.