Decision On Fuel Needs Mature Consideration

Jakarta, April 19 (Antara) - President Susilo Bambang Yudhoyono said that the government needed careful consideration and time in deciding a policy on fuel subsidy reduction. "A decision on fuel is the heaviest thing to make. I know the consequence that the people will bear," the President said on Twitter here on Friday. He said that the government would take the option which had the least burden to the people. "The option that will be taken by the government is the one which has the least burden to the people. That`s why it needs time to decide," President Yudhoyono said. He said that whatever decision taken by the government with regard to fuel oil subsidy should strengthen the economy and should not leave a burden to the next government. Indonesia will organize a legislative and presidential elections next year. On Wednesday, the president held a limited cabinet meeting to discuss the government`s plan to reduce fuel oil subsidy. After the closed-door meeting, Energy and Mineral Resources Minister Jero Wacik told reporters that the government was still deliberating in details the plan so that when it was implemented it would not create a problem. However, he said, the government was almost reaching a decision to impose a dual pricing system for subsidized premium gasoline. It was considering to impose a full subsidy and a cut subsidy for fuel which had so far been subsidized. "The people know that the government will reduce fuel subsidy. The reason is for fairness. So, the government will cut subsidy and regulate that all will enjoy equality," Jero Wacik said at the State Palace here on Wednesday. The minister said financially capable people would have a cut subsidy and for financially incapable would have a full subsidy. "The economic price of premium gasoline per liter is about Rp9,500. If it is sold at Rp4,500 per liter, it means the government provides a subsidy of Rp5,000. Financially capable people will not enjoy the full subsidy, but a subsidy of Rp3,000 per liter," he said. The minister said that the option was fair enough and could be accepted by all parties, although its technical preparations would be very complicated. "So, it should be separated between full subsidy and reduced subsidy. The president wants to know its details so that its implementation would be smooth. It should not happen that it would create protests later on. Yet, whatever policy is taken will have an impact on inflation and the poor," the minister said.