Indonesia May Delay Plan to Impose Curbs on Subsidized Fuel Consumption
Indonesia may delay a plan to limit the use of subsidized fuel to early next year from this month, Coordinating Minister for Economic Affairs Hatta Rajasa said.
“We want to be all ready before we implement the policy,” Rajasa told reporters in Jakarta today. “Hopefully in January, it can be implemented nationwide.”
The curb on subsidized fuel consumption may help Indonesia, Southeast Asia’s biggest economy, cut subsidy spending in the state budget by 8 percent to 184.8 trillion rupiah ($21 billion) next year, according to Indonesian President Susilo Bambang Yudhoyono in August. The government planned to limit the fuel use for private cars with engine capacities of more than 2,000 cubic centimeters this year, Energy Minister Darwin Saleh said June 25.
Consumption of subsidized fuel in Indonesia may rise by 6 percent to 42.5 million kiloliters next year as economic expansion boosts vehicle sales, PT Pertamina Marketing Director Djaelani Sutomo said June 7.
To contact the reporter on this story: Novrida Manurung at nmanurung@bloomberg.net
To contact the editor responsible for this story: Clyde Russell at crussell7@bloomberg.net
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