Indonesia's Government Proposes 2 Options for Fuel Prices

JAKARTA, KOMPAS.com - Indonesia's government will propose two options for adjusting the country's fuel-price policy to the house of parliament Tuesday, with expectations the subsequent adjustment will take effect in April, Minister of Energy and Mineral Resources Jero Wacik said Tuesday.

The first option would be to raise the price of gasoline and diesel by IDR1,500 per liter from IDR4,500 per liter now, Wacik told the members of the House.

The second option would be to remove the cap on gasoline and diesel prices while offering a subsidy of IDR2,000 per liter, he added. Indonesia has budgeted IDR124 trillion for fuel subsidies this year, which is about 10% of government revenue or three-quarters of the funds set aside for public infrastructure projects.

Source: english.kompas.com