The continued volatility in world oil prices has encouraged the government to improve the fuel oil (BBM) subsidy scheme. Amid various signals to increase subsidized fuel prices, the government announced an additional social assistance allocation of IDR 24,17 trillion [1]. This August edition of the Trade and Industry Brief discusses the impact of fluctuations in world oil prices on the burden of fuel subsidies in the APBN, as well as the impact of the fuel price increase scenario on inflation, especially amidst the continued uncertainty in world food prices. This Trade and Industry brief also discusses the performance of Indonesia's trade balance, which last July recorded a surplus of USD 4,23 billion, which was the 27th consecutive month of surplus. The information used in this policy brief was obtained from BPS, ICE (International Exchange), and other sources.

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