TEMPO.CO, Jakarta - The government of Joko Widodo-Jusuf Kalla is ready to cut down fuel subsidy by increasing fuel price. In addition to calculating the number of the increase, the government have also prepared compensation for underprivileged people.
"[Fuel price will increase] before January 1, 2015," said Finance Minister Bambang Brodjonegoro on Wednesday, October 29, 2014.
The government is currently focusing on implementing social protection for those who will be affected by the fuel subsidy reduction policy. Bambang said that a budget of Rp5 trillion is enough for compensation until the end of the year.
Coordinating Economy Minister Sofyan Djalil confirmed that subsidized fuel price would increase before January 2015, but the amount has not been decided yet.
The plan to increase fuel price was discussed in a meeting with Vice President Jusuf Kalla on Wednesday. In the meeting, all parties, including Pertamina, provided inputs.
In addition to fuel, Human and Cultural Development Minister Puan Maharani also explained about the Health Card program during the meeting.
Sofyan however, refused to comment whether the Health Card would be included in the compensation package.
TRI ARTINING PUTRI | FRANSISCO ROSARIANS