Exclusive: Indonesia's Widodo to hike fuel prices by around 50 percent in November - adviser

Reuters News
Posted: Oct 16, 2014 11:37 PM

JAKARTA (Reuters) - Indonesia's president-elect Joko Widodo plans to raise the price of subsidized gasoline and diesel by around 50 percent within two weeks of taking office, a move that will save the government nearly $13 billion next year, an adviser to Widodo told Reuters.

Widodo, who will become Indonesia's seventh president on Monday, aims to raise the price of both gasoline and diesel by 3,000 rupiah ($0.25) per liter, the adviser said. Gasoline currently costs 6,500 rupiah a liter, and diesel costs 5,500 rupiah.

"The plan is Nov. 1 ... but it's safe to say they are likely to do it within the first two weeks of taking office," said the adviser, who requested anonymity because he was not authorized to speak to the media. To offset the higher prices, Widodo plans to provide the poorest families with 300,000 rupiah per quarter until Q1 2016, the adviser said.

(Reporting by the Jakarta bureau; Editing by Simon Cameron-Moore)