REPUBLIKA.CO.ID, JAKARTA -- The elected president Joko 'Jokowi' Widodo reportedly has agreed to increase the fuel price of 3,000 IDR per liter. Transition team advisor, Luhut Pandjaitan said that the price increase would be announced in November, but Jokowi said that he still conducted a study.
"It is still in counting process We cannot yet confirm the price increase and the time," Jokowi said recently.
According to Pandjaitan, as compensation for the fuel price increase, government will distribute direct cash assistance for low class people. If it is true, Jokowi will become the first Indonesian president who increases fuel price highest in the last 10 years.
In March 2005, President Susilo Bambang Yudhoyono increased fuel price from 1,810 to 2,400 IDR per liter. On October 1, 2005, both leaders rose fuel price to 4,500 IDR per liter, then it rose to 6,500 IDR per liter on June 2013.
Executive Director of Energy Watch, Mamit Setiawan said that the figure was too high for people. Groups of farmers, fishermen and workers will be directly affected by rising fuel prices. Prices of basic needs will immediately hike when fuel price rises. Government also considered necessary to measure industrial readiness to raise salaries of its employees.
The increase should be carried out in three stages, in November 2014, March and June 2015.
"If in the three stages, community can be more ready to accept the increase," Setiawan said.
Minister of Finance, M Chatib Basri ensured that the fuel price would not increase until October 20. Government has allocated funds of 5 trillion IDR as compensation.
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