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eputy Governor Basuki '€œAhok'€ Tjahaja Purnama said the city administration supported the government'€™s plan to increase fuel subsidizes on the proviso that import tax on medical equipment was removed.

The request was voiced during a meeting between the central government and the governors of several provinces about the proposed dual pricing system for subsidized Premium fuel on Tuesday.

The central government is planning to implement a dual pricing system for subsidized Premium gasoline in an effort to curb the ballooning fuel subsidies.

Under the new policy, there would be two market prices of subsidized Premium; the existing price of Rp 4,500 (46 US cents) per liter, available for motorbikes and public transportation vehicles only; and Rp 6,500 per liter for privately owned cars.

If approved by President Susilo Bambang Yudhoyono, the policy could be implemented in early May.

'€œDuring the meeting, I told the deputy finance minister [Anny Ratnawati] and [coordinating economic minister] Pak Hatta Rajasa that [the city administration] basically agreed [to increase the subsidized fuel price] but we wanted compensation,'€ Ahok said in Jakarta on Wednesday.

'€œWe demand that the government removes import tax on medical equipment [...] that are deemed luxury goods. The tax [for medical equipment] is over 30 percent,'€ he said.

The deputy governor said that without import tax on medical equipment, the cost for medical services would not be as expensive as it is and people would seek treatment here rather than Malaysia or Singapore.

Jakarta Health Agency head Dien Emawati lauded the deputy governor'€™s request, saying that the removal of import tax on medical equipment would also help save the city money for its healthcare program.

'€œAs a service provider, of course I would be happy if the government granted our request. Medical equipment is all about [health] services, they are not luxury goods,'€ she said.

Dien cited the price of a coronary stent as an example '€” which could cost up to Rp 20 million. '€œNot to mention the specialists'€™ fees,'€ she said, acknowledging that many patients were reluctant to undergo heart surgery because of the cost.

'€œThe downside is that the government will get less in taxes [...] so it'€™s for the government to decide,'€ Dien added.

The city administration'€™s Jakarta Health Card (KJS) service provides free third-class health services for residents of Jakarta. It allocated Rp 1.2 trillion of the city'€™s Rp 49 trillion budget for this year for the healthcare program.

Ahok also voiced the administration'€™s concerns over the possible increase of the number of motorcyclists in the capital once the government implemented the planned fuel price hike.

'€œThat is what I am afraid of [...] so the key is public transportation. This year we want to procure 1,000 new buses that use liquefied natural gas [LNG]. I have also asked [energy minister] Pak Jero Wacik about the government'€™s plan to build 30 LNG stations,'€ he said.

The central government allocated Rp 194 trillion from the 2013 state budget for fuel subsidies, however, 77 percent of the subsidies were enjoyed by the country'€™s upper middle class.