Indonesia fuel-subsidy corruption sets first major test for President-Elect Widodo

The breakup of an alleged fuel-smuggling ring, one of the largest ever uncovered in Indonesia, highlights how the country's swelling fuel-subsidy spending can encourage corruption, while posing the first major test for incoming President Joko Widodo. Five people were arrested on the northern Indonesian island of Batam after a government agency that tracks financial crimes found they allegedly had deposited $110 million in 100 bank accounts from the sale of subsidized fuel.

Read the story by Richard C. Paddock and Yogita Lal in The Wall Street Journal (subscription req’d).

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