Govt set to raise fuel prices by 30 percent next year

The Indonesian government is set to raise fuel prices by 30 percent next year after the parliamentary budget commission gave its approval, according to Finance Minister Budiono.

AFP quoted Budiono on Monday as saying that the price rise is to cut government fuel subsidies as advised by the International Monetary Fund (IMF), which is coordinating a multi-billion dollar aid package for the country.

It must also be approved by a full session of parliament.

Budiono declined to say whether fuel prices will be raised at once in January 2002 or in stages.

Earlier, the government said the 2002 fuel subsidy was set at 33.4 trillion rupiah (3.7 billion dollars) in the revised 2002 budget compared to 53.7 trillion rupiah in the 2001 budget.

Parliament is scheduled Tuesday to pass the overall budget bill before it goes into recess.

When presenting her budget on September 7 President Megawati Sukarnoputri described the decision to cut fuel subsidies as "extremely difficult". (*)