Subsidies to offset soaring fuel prices could worsen finances, inflation
Rumors that gas prices would spike from April led to huge lines at gas stations across Indonesia. © Reuters
TOMOYOSHI OSHIKIRI, YUKI FUJITA and KENYA AKAMA
JAKARTA/MANILA/BANGKOK — Southeast Asia faces the risk of sovereign debt downgrades due to the heavier fiscal burden from subsidies to offset soaring fuel prices, where financial assistance intended to tamp down public unrest could instead fuel a vicious cycle of weakening currencies and rising prices.