Jokowi Dismisses Rumors of Fuel Price Hike in November

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  • TEMPO.CO, Jakarta - President-elect Joko “Jokowi” Widodo has dismissed a statement made by General (ret.) Luhut Binsar Pandjaitan, saying that subsidized fuel prices were to be increased by Rp3,000 in November 2014. 

    “Who said that? They are still options,” Jokowi said at City Hall on Tuesday, September 30, 2014. 

    Jokowi said that he has yet decided whether to increase subsidized fuel prices. However, he admitted there were a number of options to be discussed before making the decision. Jokowi added that the fuel price hike could range from Rp500 to Rp3,000 per liter. 

    “So, who confirmed that? I haven’t even been inaugurated yet,” Jokowi said. 

    Earlier, Luhut Binsar Pandjaitan said that Jokowi and Jusuf Kalla had agreed to increase the subsidized fuel prices to Rp3,000 per liter in November 2014. 

    “It has been decided on Friday [the fuel price] will be increased by Rp3,000 per liter,” Luhut said. 

    Luhut revealed that the move would add Rpp27 trillion (US$2.25 billion) to the budget deficit. In addition Jokowi and Jusuf Kalla administration would have to cover the fuel subsidy debt of Rp46 trillion (US$3.83 billion). Without increasing the fuel prices, Luhut said, the state budget will suffer Rp72 trillion (US$6 billion) deficit.