Jakarta (The Jakarta Post/ANN) - Indonesian Finance Minister Agus Martowardojo said on Thursday the government would increase subsidised fuel prices, which will take effect in April, pending approval from the House of Representatives.
The government would submit the revised state budget to the House in early March.
"The new policy can be applied 30 days from the submission date," he said after a meeting at the Energy and Natural Resources Ministry in Jakarta.
Agus refused to elaborate on what the new prices would be.
"[We'll announce the new prices] after we meet with the House," he said.
House energy commission member Satya W. Yudha said that if the government hiked the subsidised fuel prices by 1,000 rupiah (US$0.11) the state could save up to 38 trillion rupiah ($4.2 billion).
"If the government raises the prices by 1,500 rupiah ($.16), it could save up to 54 trillion rupiah ($5.9 trillion)," he said as quoted by tempo.co, adding that the funds saved should be used properly.
The government had planned to apply a controversial mechanism limiting the use of subsidised fuels, a proposal which received mixed responses from the public over its applicability.
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