"(The new price) will take effect one hour since the announcement of price adjustment. Hence, it will take effect at 2:30 p.m. local time (UTC +7)," Energy and Mineral Resources Minister Arifin Tasrif stated here.
He remarked that the new price of subsidized Pertalite (RON 90) fuel will be Rp10 thousand (US$0.67) per litre, from the earlier price of Rp7,650 (US$0.51).
Meanwhile, Solar (diesel) fuel will be sold at Rp6,800 (US$0.45) per litre after 2:30 p.m. local time on Saturday, from its earlier price of Rp5,150 (US$0.34), the minister noted.
Non-subsidized Pertamax (RON 92) fuel, earlier sold at Rp12,500 (US$0.83), will currently be sold at Rp14,500 (US$20.97) per litre, Tasrif remarked.
The government decided to divert the fuel subsidy to direct social assistance distributed to eligible residents in a bid to relieve the burden of energy subsidy, which has consumed Rp502.4 trillion (US$33.6 billion) from this year's state budget.
President Joko Widodo stated that the government had, since long, committed to protecting residents from the fluctuations in global oil prices, and the energy subsidy had been allowed to increase three folds the initial budget set in the state budget.
"I actually want the domestic fuel price to remain affordable by providing subsidies from the state budget, but this year's fuel subsidy and compensation budget increased three times (the initial value of) Rp152.5 trillion (US$10.2 billion) to Rp502.4 trillion, and it is expected to continue to increase," the head of state remarked.
Meanwhile, Coordinating Minister of Maritime and Investment Affairs Luhut Binsar Pandjaitan stated that despite the fuel price hike affecting the price of other commodities, the option is more feasible than holding the current fuel price.
He stated that the government had calculated all aspects properly before deciding that an increase in the fuel price would be the best option.
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Translator: Indra Arief P, Nabil Ihsan
Editor: Rahmad Nasution
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