Jakarta, ID
Tuesday, May 29 2012, 12:24 PM

National

Fuel subsidies debate clouds budget endgame

A- A A+

Coordinating Economic Minister Hatta Rajasa says that the House must deliberate on the potentially explosive issue of fuel subsides before approving the 2012 state budget.

“We are still discuss some issues, like what is the proper figure for fuel subsidies. Once we reach agreement on this then everything will be running smooth and hopefully the 2012 state budget can be delivered on schedule,” he said on Thursday as quoted by tempointeraktif.com.

Some budget-minded legislators want the government to reduce fuel subsidies, while the government wants to prevent a repeat of the riots that followed the last spike in fuel prices.

The House's deliberations came to a standstill after some House budget committee members stopped work after its leaders were summoned by the Corruption Eradication Commission (KPK) for questioning on a graft investigation.