No Plan So Far to Raise Subsidized Fuel Prices

JAKARTA, KOMPAS.com - Indonesia's government currently has no plan to raise prices of subsidized fuel, as appreciation in the rupiah is helping shield the state budget from the impact of rising global oil prices, the economics minister said Tuesday.

“It is the government's intention to continue to provide subsidies until they are no longer needed,“ Coordinating Minister for the Economy Hatta Radjasa told reporters.

Raising fuel prices is a politically sensitive issue in Indonesia and price increases have led to social unrest in the past. The government earlier this year shelved a plan to ban private cars in the Greater Jakarta area from consuming subsidized fuels, due to concerns it would stoke inflationary pressures.