Minister Confirms Fuel Price Increase
24 April 2013 11:46 WIB
TEMPO.CO, Jakarta-Coordinating Minister for Economic Affairs Hatta Rajasa confirrmed that the reduction of fuel subsidy for private cars will start on May 2013, as the government finalized the plan. “We will focus on decreasing fuel subsidy for private cars,” he said when contacted at his office, Tuesday, April 23.
However, Hatta refused to provde any details regarding the dual price system. “Ask the Energy Minister for technical things,” he said.
Meanwhile during his visit to Singapore, President SBY stated that the policy will be implemented on May 2013. “Insya Allah (if God permits), we will take an important step (to decrease the subsidy) next month,” he said, as quoted by Reuters, Monday, April 22.
Fuel subsidy has put an extra Rp. 300 trillion (US$ 30,84 billion) burden to the 2013 state budget (APBN), or equals to 15 per cent of the total 2013 stated budget. Without the right policy, the amount is predicted to increase this year.
Earlier, PT Pertamina (Persero) prepared a scenario for a dual price system. Subsidized fuel for motorcycle and public transportation will be sold at Rp. 4,500, while fuel for private cars will be sold at Rp. 6,500.
AYU PRIMA SANDI
