TEMPO.CO, Jakarta - Vice President Jusuf “JK” Kalla ensured that the policy to increase fuel prices will be implemented in November. According to JK, the process to enforce the policy has been completed and the government is ready to distribute Indonesia Healthy Card (KIS), Indonesia Smart Card (KIP) and Indonesia Family Saving Card (KKS).
“[The fuel prices will be increased] this month,” JK said at his office on Monday, November 3, 2014.
However, JK could not clarify whether the fuel prices would be increased gradually or at once, saying that increasing fuel prices at once could mean less burden for the State Budget. The government is currently crafting the formula to reduce fuel subsidy.
JK revealed that the government is considering to redirect subsidy from consumptive to productive sectors, including public’s social welfare. Although he did not deny that KIS and KIP are hints of fuel price hike, the fund for such welfare programs came from subsidy reallocation.
“So, these are not compensations, but subsidy reallocation from those who have cars to poor people,” JK said.