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resident Susilo Bambang Yudhoyono is postponing forwarding his revised state budget to the House of Representatives, adding more uncertainties to plans to increase subsidized fuel prices.

The most contentious issue in Yudhoyono's draft revised budget for 2013 is a plan to provide temporary direct cash assistance (BLSM) to poor families to compensate for the price hikes.

Observers said that the compensation program, modeled on a direct cash assistance (BLT) program in 2009, might be used as a political tool to woo voters ahead of the 2014 presidential and legislative elections.

After accompanying Yudhoyono at a meeting with House leaders on Monday, Coordinating Economic Minister Hatta Rajasa said that the government would forward its draft to the House on Tuesday since it had received backing for most of the changes from lawmakers.

However, the draft was not sent to the House as promised. When asked why, Hatta said: 'Everything is clear ['¦.]. No problem' without elaborating.

Meanwhile, Yudhoyono then summoned top politicians from all the political parties in his ruling coalition to the State Palace for a closed-door meeting that lasted for about an hour.

Syariefuddin Hasan, the executive chairman of Yudhoyono's Democratic Party, confirmed that those at the meeting discussed the government's plan to increase subsidized fuel prices and to provide compensation programs.

'We finally obtained a verbal commitment from all of the coalition parties [...] to support the government's proposals, including the BLSM program,' Syariefuddin, who is also cooperatives and small and medium enterprises minister, said over the telephone after the meeting.

Representatives at the meeting from the Prosperous Justice Party (PKS), which openly opposed the coalition line to raise prices in 2012, also backed the proposal, Syariefuddin said.

Other politicians at the meeting included Hatta, as chairman of the National Mandate Party (PAN); Golkar Party chairman Aburizal Bakrie; Suryadharma Ali, the United Development Party (PPP) chairman and religious affairs minister; Ahmad Helmy Faisal Zaini, National Awakening Party deputy chairman and disadvantaged regions minister; and Salim Segaf al Jufri, PKS patron and social affairs minister.

Syariefuddin said that he hoped the commitment evinced by party leaders at the meeting would translate into support for the government's proposal in the House.

The absence of PKS chairman Anis Matta at the meeting was downplayed by Syariefuddin, who said that Salim, as a PKS patron, was enough to represent the 'most rebellious' member of Yudhoyono's coalition.

The PKS, which has been in turmoil following the Corruption Eradication Commission's (KPK) investigation of the involvement of several of its top members in the import beef scandal, has a record of openly challenging the government in the House, despite its participation in Yudhoyono's coalition.

Before meeting with the President, the leaders of the coalition held numerous meetings at their joint secretariat to convince all parties that the plan to hike fuel prices and introduce compensation programs were essential for curbing the growing state budget deficit.

After making several changes, the government said late last week that it would propose raising the price of subsidized Premium gasoline by Rp 2,000 (21 US cents) and the price of subsidized diesel fuel by Rp 1,000.

Premium and diesel are currently sold for Rp 4,500 a liter, below the market price for both fuels of around Rp 9,000 a liter.

The government has estimated that it could save up to Rp 37 trillion from increasing fuel prices, more than Rp 13 trillion of which would be earmarked for compensation programs to insulate the nation's 'very poor' families from follow-on inflation after prices are increased.

The President previously said that he wanted the House's deliberations on the fuel subsidy and the compensation programs to proceed smoothly.

Analysts, however, have said that it would be difficult for lawmakers to reach a political consensus, particularly on the cash compensation programs, given the intense political atmosphere ahead of the elections.

Only two of the nine political parties represented in the House, Yudhoyono's ruling Democratic Party and Golkar, have supported the government's plans.

Lawmakers have suggested that state funds freed by reducing the fuel subsidy be earmarked to finance infrastructure projects and to fund basic services, such as education and health services.

Others have said that the government still had a lot of homework to do over the long term to reduce state budget deficits and should not increase subsidized fuel prices, which would increase prices in general for those that could least afford it.