TEMPO.CO, Jakarta - Vice President Jusuf Kalla said the drop of the world's oil price to US$85 per barrel had caused the government to delay the increase of subsidized fuel price.
Kalla, speaking at the Permata Bank Indonesia Economic Outlook 2015 event in Jakarta on Wednesday, November 12, 2014, said that the program that was set to be implemented earlier this month has been delayed.
The government, said Kalla, will have to revise the new price that will be implemented. "There will be a recalibration of the increase to make sure the subsidy is not as large as it currently is," he said.
However, the increase is inevitable. Kalla also explained that the increase must be applied to relieve financial pressure on the State Budget.
"This is a decision that we have to make, whatever the consequences are, as President Joko Widodo has explained before," said Kalla.