Government will compensate the poor for the fuel price hike by providing them with Prosperous Family Cards, Indonesia Health Cards, and Indonesia Smart Cards.Jakarta (ANTARA News) - Indonesian President Joko Widodo (Jokowi) has announced the increase of subsidized fuel oil prices that will take effective at 00:00 am or early Tuesday (Nov 18, 2014).
On Monday night, the government decided to raise the price of the subsidized gasoline to Rp8,500 from Rp6,500 a liter and the price of subsidized diesel oil to Rp7,500 from Rp5,500 a liter.
The price of kerosene, however, remains unchanged at Rp2,500 a liter.
The fuel price hike will be effective across the country from Tuesday, November 18.
President Jokowi stated that the government needed sizable amount of funds to finance the development of infrastructure and improve education and health services.
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.
Meanwhile, Minister for Energy and Mineral Resources Sudirman Said stated that the new selling prices of fuel oils has been stipulated in the Minister of Energy and Mineral Resources regulation No. 34, 2014.(*)
Editor: Heru Purwanto
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