Indonesia to implement policies to limit subsidized fuel consumption

Indonesia’s Coordinating Minister for the Economy Hatta Radjasa announced that the government would begin implementing policies aimed at limiting subsidized fuel consumption, a move that is expected to raise power tariff in April this year. Hatta reiterated that the government wants to maintain the subsidized fuel consumption quota of 37.5 million kilo liters, which is indicated in the state budget. Subsidized fuel was originally provided to help owners of public transport vehicles, fishing boats and motorbikes, but private car owners subsequently became the primary beneficiaries of the subsidy. There are speculations that the government will be imposing a 10% power tariff increase in April, upon approval of the parliament. (January 3, 2012)