Govt decides to increase BBM prices
Saturday, June 22 2013 - 03:56 AM WIB
The government announced on Friday night that it had decided to increase the prices of subsidized oil fuels (BBM) in an effort to save the state budget from swelling subsidy.
Energy and Mineral Resources Minister Jero Wacik said in his announcement on Friday night that the government has increased the prices of subsidized premium gasoline from Rp 4,500 to Rp 6,500 per liter and diesel fuel from Rp 4,000 to Rp 5,500 per liter.
He said that the new prices would be effective after Friday midnight or at 00:00 hours on Saturday, 22nd June 2013. ?The new prices will be effective across the country,? he said.
According to him, the announcement was based on the ministry?s regulation, No.07/PM/12/MPM/2013 on prices adjustment of subsidized oil fuels (BBM) according to the presidential decree No.15/2012, verses 4, 5 and 6, on BBM price and subsidy and on the energy and mineral resources ministry regulation No.18/2013 on the retail prices of certain oil fuels for certain consumers.
Meanwhile, Coordinating Minister of Economy, Hatta Rajasa said that the government has to take the decision to save the economy. ?This is the last resort for the government to save our economy from worsening financial burden resulting from swelling subsidy. But it will be followed with a number of policies to help the general public affected by the decision,? he said.
He said that if the government would not cut the BBM subsidy, the state budget will see a deficit of three percent per year or around Rp 300 trillion, and will continue to increase along with the increase of oil prices at the international market.
According to him, the state budget deficit could be further worsened as Indonesia?s consumption of BBM has a tendency to continue to increase every year.
Editing by Benget Besalicto Tnb.