President Jokowi Signals Govt to Raise Subsidized Fuel Prices Soon

The signal for increased subsidized fuel oil prices is getting stronger. President Joko "Jokowi" Widodo said that no country in the world provides huge fuel subsidies like Indonesia. "Do we continue to maintain the figure of Rp 502 trillion? If we can, Alhamdulillah. It means that the people are not burdened, but what if the State Revenue is incapable?" Jokowi said on Friday.

President Jokowi has discussed with high-ranking state officials, including the Chairman of the People's Consultative Assembly (MPR) Bambang Soesatyo and House of Representatives (DPR) Chair Puan Maharani, about this year's fuel subsidy figure. "We still have state income from commodities. Commodities [prices] are still good, we will continue, but what if it's not [strong enough]?" he said.

A clearer signal for increased fuel prices came from the Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia. According to him, this year's fuel subsidy could reach Rp 500-600 trillion, following the surge in Indonesian oil prices (ICP) and the additional Pertalite quota. "Tell the people. I think holding the fuel price as it is now is not healthy. Please understand. We must be prepared if, say, the fuel prices increase," he said.