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No plan to increase fuel prices: Jokowi

Jakarta Post - March 4, 2024

Jakarta – President Joko "Jokowi" Widodo said on Monday that the government had no plan to increase fuel prices in the coming weeks.

The decision was announced after the President staged a short cabinet meeting before his departure to Australia for a working visit.

"There won't be any price increase. Pertamina will make the announcement," Jokowi said, referring to state-owned oil company. The President also mentioned that the announcement could be made by Coordinating Economic Minister Airlangga Hartarto.

Previously, Airlangga said that the government would not make decisions regarding fuel and electricity prices until June this year.

Airlangga said that consumers could expect for subsidized and non-subsidized fuel prices to remain stable.

The senior minister said that the government could set aside funding from the 2024 state budget to pay for fuel subsidies.

Discussion about whether to cut fuel subsidies emerged after the government decided to prioritize the free lunch and milk program proposed by presumptive president-elect Prabowo Subianto.

Prabowo been encouraged to review costly fuel subsidies, which reached Rp 500 trillion (US$32 billion) last year, to ensure that they focus on the poor.

Indonesia currently subsidizes certain types of fuel and electricity tariffs, a policy that has kept inflation low but has exposed state coffers to swings in global oil prices.

President Jokowi made a surprise decision in September 2022 to increase fuel prices, which he said was a last resort.

Source: https://www.thejakartapost.com/business/2024/03/04/no-plan-to-increase-fuel-prices-jokowi.htm