Coordinating Minister for the Economy Hatta Rajasa said on Thursday that implementation of the limitation of subsidized fuels needed to be postponed as the plan still had to be consulted with the House of Representatives.
"Looking at the price progress (of crude oil) which is now skyrocketing and triggering inflation on foodstuff, and the readiness of the Jakarta and its surrounding areas (to accept the limitation), it would be better if we postpone it," said Minister Rajasa.
The idea for postponing the limitation policy, however, will still be consulted with the House of Representatives, he added.
On the fast rising prices of crude oil in the global market, Rajasa said that the government had no plan as yet whether to raise the prices of fuels.
Rajasa said that the current surge on prices of crude oil is of temporary in nature due to political crisis in Libya, a similar event that had taken place in Egypt.
State oil company PT Pertamina has earlier planned to implement limited sales of subsidized fuels (gasoline and diesel) in the Jakarta and its surrounding town in March 2011. This policy is also to be implemented nationwide in 2013.
The curb on subsidized fuel consumption may help Indonesia cutting subsidy spending in the state budget by 8.9 percent to 184.8 trillion rupiah (20.5 billon US dollars) for 2011.
The program will help the government to cut subsidized fuel quotas in the 2011 budget by 40 percent to 22.16 million kiloliters, according to Karen Agustiawan, president director of the PT Pertamina in December 2010.(*)
Editor: Aditia Maruli Radja
Copyright © ANTARA 2011
