Golkar asks the government to raise fuel prices

Golkar Party has demanded the government to soon raise the fuel prices in a bid to curb a further increase in the government’s growing fuel subsidy, Media Indonesia reported on Wednesday.

The demand was unveiled by the party’s senior executives Enggartiasto Lukita and Tadjuddin Noer Said at a press conference held at the party’s office in Slipi, West Jakarta on Tuesday.

Golkar, which is the largest party in the House of Representatives, is chaired by Vice President Jusuf Kalla.

“The increase is needed to prevent the country from bankruptcy,” Enggartiasto said, adding that continued increase in the price of crude oil in the international market would further worsen the government’s financial condition.

He said with the rupiah rate of about Rp 9,700 per U.S. dollar at present, the government’s fuel subsidy will increase by Rp 4 trillion for every US$1 increase in the crude oil price.

“The raise in the fuel price will be unpopular but it is quite realistic to save the economy,” he said. (*)