REPUBLIKA.CO.ID, JAKARTA -- President Joko "Jokowi" Widodo expects the fuel price decrease will be followed by decreasing price of transportation and staple food. Inflation this year is also expected to be below government's target.

"We have to tell the information to all ministers, governors, regents and mayors so that they can push the price of staple food to decrease," Jokowi said after announcing the new fuel price yesterday.

The price of 88-octane Premium fuel will decrease from 7,600 IDR to 6,600 IDR per liter, while diesel fuel will decrease from 7,250 IDR to 6,400 IDR per liter. Jokowi also announced that the price of 12-kilogram LPG will decline from 134,700 IDR to 129,000 IDR. The price of cement is also reduced by 3,000 IDR per sack. The new price will be implemented officially at 00:00 WIB on Monday.

Minister of Finance Bambang Brodjonegoro is optimistic that the move will decrease the price of staple food. Thus, inflation will not surpass government's target. In revised state budget 2015, government sets the target of inflation at 5 percent, higher than previous one at 4.4 percent.

Meanwhile, Head of Golkar Party Central Board Nurul Arifin is pessimistic. "Fuel price decrease will not affect the price of staple food and transportation cost," she said on her Twitter account @NurulArifin66 on Saturday, January 17.

She said that it was caused by Jokowi's hasty decision on rising fuel price last November. The president increased the fuel price to 8,500 IDR per liter last year.

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