President Jokowi Announce Price Increases in Fuel Subsidies

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jokowiJakarta – President-elect Joko Widodo officially announced the new price for the two types of fuel oil (BBM) subsidythat premium gasoline and diesel oil. Premium and diesel oil prices rose respectively Rp. 2,000 per liter.

“With effect from 18 November 2014 at 00.00 pm, the price premium set of Rp. 6,500 to Rp. 8,500 per liter. PriceSolar set of Rp. 5,500 to Rp. 7.500,- per liter”, said Jokowi at the State Palace, Monday (11/17/2014) at around 21:00 pm.

According to Jokowi, after a series of discussions at the cabinet meeting, the technical coordination meetings in theCMEA and the closed meeting at the palace, the Government decided to conduct the transfer of subsidies from the productive sector to the consumer sector.

“So far, the state requires a budget to build infrastructure, develop education, and health. However, this budget is not available because it dissipated on fuel subsidies”, said Jokowi.

Admittedly result of this increase, would have sprung opinion agree and disagree. The decision to transfer the subsidy to the productive sector is opening the way to bring the budget that is more beneficial to the people ofIndonesia as a whole.

Meanwhile, Minister of Energy and Mineral Resources (MEMR) Sudirman Said, said that as the implementation ofthe government’s decision, the Ministry of Energy and Mineral Resources has issued a decree number 34 of 2014On Retail and Consumer Price User Type Specific Fuel Oil.