Just wait, wait for the President. However, it is certain that subsidized fuel will definitely increase (in price)Toba, North Sumatra (ANTARA) - The government affirmed that the price of subsidized fuel oil would certainly increase in the near future.
"Just wait, wait for the President. However, it is certain that subsidized fuel will definitely increase (in price)," Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan stated in Toba District, here on Saturday.
Pandjaitan steered clear from mentioning the exact time when the announcement would be made since it was President Joko Widodo's right to announce the decision.
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He also noted that the government was keen to suppress the impact of rising fuel prices on the people, including by applying social assistance schemes, such as cash assistance.
"We are not procrastinating. We are still preparing everything like cash assistance, giving it. Hence, when it is announced, it (the cash assistance) will be distributed," he said.
The minister admitted that the option to increase the price of fuel would have a ripple effect on the prices of other commodities, though he opined that this was better than not increasing the price of fuel.
He also said that problems arising from the increase in fuel prices would only be temporary.
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"This causes problems, yes. For the time being, indeed, for a certain period of time, there will be (difficulties). However, after a few months, it will no longer be the same," he remarked.
He noted that the government had conducted good calculations, so that the policy of raising fuel prices was the best option as compared to leaving the price unchanged.
Moreover, the government subsidies were huge, reaching US$20 billion, so it was not good to hand out subsidies for too long.
"We have calculated that (increasing the fuel prices) is better than not. When? You will see. We cannot subsidize for too long. Nearly 20 billion US dollars more, that is a (waste)," he concluded.
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Translator: Adimas R F P, Mecca Yumna
Editor: Fardah Assegaf
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