Government may delay rise in oil prices and electricity rates

The government might delay the planned increase in fuel prices and electricity rates due uncertainty that takes places due to the change in the economic team in President Abdurrahman Wahid?s economic team, a legislator said in Jakarta on Tuesday.

Iwan Prajitno, the head of the Commission VIII of the House of Representatives, said that the replacement of Minister of Finance could affect the implementation of the new fuel and power prices.

?The finance minister?s replacement is an example of uncertainties that could lead to the delay in the rise in fuel prices and electricity rates,? he was quoted as saying by Kompas daily.

The House has initially approved the government?s proposal to raise fuel prices by an average of 30 percent and electricity rates by about 17 percent, respectively beginning June 15 and July 1.

He said that the rise in the fuel and power prices had been approved with the outgoing finance minister as part of the overall revision in the state budget. The appointment of the new finance minister could therefore jeopardize all the agreements which had been achieved by the former minister, he added.

President Abdurrahman Wahid reshuffled on Tuesday the economic team in the Cabinet as part effort to come out from the country?s economic difficulties. In the reshuffle, Coordinating Minister for the Economy Rizal Ramli was downgraded to fill the place of dismissed Prijadi Praptosudhardjo. Rizal;?s position was given to central bank?s deputy director Burhanuddin Abdullah. (*)