Jokowi will Raise Fuel Prices Next Year
15 October 2014 15:08 WIB
TEMPO.CO, Jakarta - President-elect Joko Widodo will raise the price of subsidized fuel next year. This year, the Jokowi-Kalla administration will first try to boost state revenues from taxes before narrowing the budget deficit by cutting subsidies.
"[The fuel price hike] can be done next year, but it has not been decided whether it would be raised by Rp500, Rp2,000 or Rp3,000; because the pedestal to overcome budgetary issues lies in tax revenue," Jokowi said in a special interview with Tempo at the City Hall last week.
According to Dolfi O.F. Palit, former member of the Jokowi-Kalla Transition Team's Work Budget Group, increasing fuel prices in the near future is very difficult. Before increasing fuel prices, the government must first prepare an economic empowerment program for the people who will be affected by the increase.
In addition to waiting for ministries readiness in overseeing social assistance, he said, the implementation must also wait for some clarity regarding the 2015 State Budget Amendment. "That's why, we can only raise fuel prices by mid next year," Dolfi told Tempo.
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