Indonesian Govt Comes Around on Fuel Price Rise
Arientha Primanita | February 23, 2012
“Indonesia is a funny nation. Most of us are not rich people yet we like to use a lot of expensive fuel oil,” said Deputy Mines and Energy Minister Widjajono Partowidagdo. (Bloomberg photo).
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499930first riot and they will u turn if current performance is anything to go by
“There were proposals [to raise the subsidized fuel cost] by Rp 500 per liter, Rp 1,000 and Rp 1,500 per liter. We have received these three [possible] numbers,’’ Jero told reporters after a cabinet meeting at the State Palace."
"Jero said the government would provide “transportation coupons,” or public transportation vouchers, to the public to ease the pain of the subsidized fuel price increase."
Sounds like another case of announcing half baked ideas before they have been thought through and finalised.
Just another case of the government putting stuff off until it becomes a huge problem.
You could train monkeys to do a better job of running the country.
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After mulling various options, the government is now considering raising the subsidized fuel price by up to a third to help reduce fuel subsidy costs in the state budget.
Energy and Mineral Resources Minister Jero Wacik said on Wednesday that the government was considering raising the price of subsidized fuel by up to Rp 1,500 (17 cents).
“There were proposals [to raise the subsidized fuel cost] by Rp 500 per liter, Rp 1,000 and Rp 1,500 per liter. We have received these three [possible] numbers,’’ Jero told reporters after a cabinet meeting at the State Palace.
Citing various input from the public, Jero added that “raising [the price] is the most feasible option to take.”
He did not say which of the three options was the likeliest to be adopted but said the government would submit the proposal to the House of Representatives for further discussion.
“If possible, it should reach the House of Representatives in early March,’’ the minister said.
Any price increase in the state budget, including that of subsidized fuel, has to be approved by the House.
Jero said the government would provide “transportation coupons,” or public transportation vouchers, to the public to ease the pain of the subsidized fuel price increase.
Earlier on Wednesday, President Susilo Bambang Yudhoyono hinted about the possibility of the fuel price increase.
He said that in view of the fast-rising global oil prices, the government needed to review its projected oil expenditure for the state budget.
“We need to redefine it into a realistic assumption in line with the conditions, including the subsidy policy and the one on fuel and electricity rates,” he said.
Yudhoyono added that all available information pointed to raising subsidized fuel prices as a superior alternative to launching a program of conversion to natural gas. That plan was panned as impractical and time-consuming.
The government last raised the price of subsidized fuel in May 2008 by an average of 33 percent to Rp 6,000 per liter. In 2005, one year after Yudhoyono took office, it was raised twice, from Rp 1,800 per liter to Rp 2,400 per liter (33 percent) in March and then to Rp 4,500 per liter (88 percent) in October.
Indonesia’s subsidized fuel now sells for Rp 4,500 per liter while the higher-octane, unsubsidized Pertamax and Pertamax Plus are priced from Rp 8,000 to Rp 9,000 per liter on Java.
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