Indonesia has announced to raise subsidised petrol prices in an effort to ease the pressure on budget deficit and save for welfare sectors.
Accordingly, fuel prices are raised by 2,000 rupiah (0.16 USD) per litre, with subsidised gasoline now costing 8,500 rupiah (0.7 USD) a litre and diesel 7,500 rupiah (0.61 USD) as from November 18.
The government needed sizable amount of funds to finance the development of infrastructure and improve education and health services, President Joko Widodo was quoted by Indonesia’s Antara News Agency as saying.
These required funds were frequently unavailable because a considerable amount was spent on fuel subsidy, he noted.
Apart from that, the government will compensate the poor for the fuel price hike by providing them with Prosperous Family Cards, Indonesia Health Cards, and Indonesia Smart Cards.
"The move is aimed at maintaining the purchasing power of the people and encouraging them to carry out business undertakings in productive sectors," Jokowi explained.
Indonesia is currently amongst Asian biggest fuel importers with the highest level of subsidy in the region.-VNA
Accordingly, fuel prices are raised by 2,000 rupiah (0.16 USD) per litre, with subsidised gasoline now costing 8,500 rupiah (0.7 USD) a litre and diesel 7,500 rupiah (0.61 USD) as from November 18.
The government needed sizable amount of funds to finance the development of infrastructure and improve education and health services, President Joko Widodo was quoted by Indonesia’s Antara News Agency as saying.
These required funds were frequently unavailable because a considerable amount was spent on fuel subsidy, he noted.
Apart from that, the government will compensate the poor for the fuel price hike by providing them with Prosperous Family Cards, Indonesia Health Cards, and Indonesia Smart Cards.
"The move is aimed at maintaining the purchasing power of the people and encouraging them to carry out business undertakings in productive sectors," Jokowi explained.
Indonesia is currently amongst Asian biggest fuel importers with the highest level of subsidy in the region.-VNA
