Indonesian President-elect Joko Widodo is considering raising subsidized fuel prices as early as next month as he seeks to free up state funds to invest in Southeast Asia’s largest economy at the start of his term.
“We can’t avoid this solution” because we are unable to find other ways to boost revenue in the short term, Arif Budimanta, a member of Widodo’s economic team, said in an interview in Jakarta late on Tuesday. “Previously, we expected a price increase this month under the current government, but the current government can’t do it. Maybe we can do it in October or November.”
The team is considering three alternative ways of raising fuel prices to curb subsidies: a one-time price increase, a gradual adjustment done every quarter or fixing the subsidy amount, Budimanta said. The administration of Joko, known as Jokowi, will find ways to prevent spikes in food prices and minimize the impact on public transportation when fuel costs rise, he said. It will also come up with plans to allocate cash for poor people, he said.
Jokowi Mulls Raising Indonesia Fuel Prices as Early as October | The Jakarta Globe
“We can’t avoid this solution” because we are unable to find other ways to boost revenue in the short term, Arif Budimanta, a member of Widodo’s economic team, said in an interview in Jakarta late on Tuesday. “Previously, we expected a price increase this month under the current government, but the current government can’t do it. Maybe we can do it in October or November.”
The team is considering three alternative ways of raising fuel prices to curb subsidies: a one-time price increase, a gradual adjustment done every quarter or fixing the subsidy amount, Budimanta said. The administration of Joko, known as Jokowi, will find ways to prevent spikes in food prices and minimize the impact on public transportation when fuel costs rise, he said. It will also come up with plans to allocate cash for poor people, he said.
Jokowi Mulls Raising Indonesia Fuel Prices as Early as October | The Jakarta Globe
