Jakarta (ANTARA News) - The government is planning to provide Rp25 trillion in a temporary direct cash assistance (BLSM) for the poor who would be affected by the increase in fuel oil prices, a senior minister said.

"The assistance will be distributed to the poor when the fuel oil prices are raised. If the oil prices are raised in April 2012, the assistance should be distributed in April as well," said Hatta Rajasa, chief economic minister, here on Friday.

He said that the assistance would be provided to about 30 percent of Indonesia`s population or about 18.5 million families who would be affected by the price hikes. "About 30 percent of the people or 18.5 million families will receive assistance," Hatta said.

The chief economic minister said that the assistance would be provided in different forms, among others in the form of direct assistance to each poor family. The amount of money they will receive would be more than Rp100 thousands, such as the ones provided in the previous years for the poor.

The government had two options of oil price increase, namely an increase by Rp1,500 per liter or a fixed subsidy of Rp2,000 per liter.

For the diesel oil type, the government is proposing an increase to Rp6,000 per liter. "We have once had a price of Rp6,000 per liter," he said.

The other option is that the government provide a fixed subsidy of Rp2,000 per liter which is intended to prevent fluctuations of prices in the state budget, the minister added. (*)

Editor: Kunto Wibisono
Copyright © ANTARA 2012