Indonesia Fuel Cuts to Keep Inflation in Check, Aid Bond Rally
- Cheaper gasoline will limit price gains: Trimegah Securities
- Sovereign notes in biggest weekly advance in a month
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Indonesian sovereign bonds rose this week, pushing the 10-year yield down the most in a month, on speculation a cut in domestic fuel prices will keep inflation in check.
The price consumers pay for gasoline was lowered 7.2 percent to 6,450 rupiah ($0.49) a liter, while diesel was reduced 8.8 percent to 5,150 rupiah a liter. The changes are effective Friday and, while prices are reviewed every quarter, the new levels are hoped to be maintained for six months, Energy Minister Sudirman Said told reporters on Wednesday.