AP

Whoever wins Indonesia’s July 9 presidential election will face tough political and fiscal choices on the issue of fuel subsidies.

Both Jakarta Governor Joko Widodo and Prabowo Subianto, a former commander of military special forces, have promised to phase out fuel subsidies, which amount to 150,000 rupiah ($12) per day for each driver in Indonesia. In recent years the subsidies have become a growing burden for the government amid rising sales of motor vehicles in one of Asia’s most vibrant consumer markets.

Despite a reduction to subsidies last year that sharply drove up prices of gasoline and diesel, the fuel subsidy bill has risen from about 0.7% of gross domestic product in 2007 to an estimated 2.8% of GDP this year, according to recent research from Goldman Sachs.