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Fuel-price hikes aim to boost infrastructure development: VP
Vice President Jusuf Kalla said the governmentâs policy to increase the fuel price was aimed at developing infrastructure in Indonesia
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V
ice President Jusuf Kalla said the government's policy to increase the fuel price was aimed at developing infrastructure in Indonesia.
'Indonesia aims to develop longer roads, more schools and hospitals. Without an adequate state budget, how can we build the roads, hospitals and schools,' he said as quoted by Antara.
The vice president was speaking after he launched the Taruna Merah Putih (Red-and-White Youth) blood donor event in Jakarta on Sunday morning.
Kalla further explained that some of money formerly allocated to fuel subsidies would be used for the development of public infrastructure.
'Therefore, we will properly determine the subsidies we will allocate. If the rupiah depreciates or global fuel prices soar, it is very likely that there will be a fuel price increase. It's a risk of the policy that we have settled on,' he said.
Kalla earlier said that the government's policy to increase the fuel price by Rp 500 (4 US cents) per liter, which took effect as of March 28, was due to the depreciating rupiah.
'We know that the rupiah exchange rate still stands at roughly Rp 13,000 per dollar while the world's oil price has soared again,' said the vice president during a work visit in Jambi on Saturday.
Based on Presidential Regulation No.191/2014, premium fuel is no longer a subsidized commodity. Meanwhile, diesel and kerosene remain subsidized commodities -- prices are set by the government. The government is providing a fixed subsidy of Rp 1,000 per liter for diesel while kerosene has a fluctuating subsidy. (ebf)(+++)
