Indonesian growth hit by doubling of fuel prices

Indonesia’s economy grew by an annualised 4.9 per cent in the final quarter of last year, its slowest growth in six quarters, after the government of President Susilo Bambang Yudhoyono more than doubled fuel prices.

…The result was a major hit to private consumption – which makes up about two-thirds of gross domestic product – and the effects have continued to filter through into this year. According to Indonesia’s biggest automaker, Astra, car sales in the archipelago fell 41 per cent year on year in January.

Financial Times