REPUBLIKA.CO.ID, JAKARTA -- The Indonesian Employers Association (Apindo) supports government plan to reduce subsidized fuel oil as it burdens state budget. Indonesia in the last few years also experienced budget deficit and trade balance deficit.

"It was the right decision (increasing fuel price)," Apindo chairman, Sofjan Wanandi said on wednesday.

Reducing subsidized fuel means the price will increase. According to Wanandi, the increase is certainly becoming polemic in Indonesia. However, the future impact will be much better. If government did not rise the price, the state budget spending will hike. As the result, Indonesia's foreign debt continues to increase.

"A lot of foreign debts are not good for national economy," Wanandi said.

The elected president, Joko 'Jokowi' Widodo previously said that he would risk damaging his popularity by raising the price of subsidized fuel. The cadre of Indonesian Democratic Party of Struggle (PDIP) decision has raised people's eyebrows because the party always rejected efforts to increase fuel prices during period of President Susilo Bambang Yudhoyono.

Government has set a subsidized fuel quota of 46 million kiloliters (kl) this year. It consists of 29 million kl of premium gasoline, 900,000 kl of kerosene and 16 million kl of diesel.

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