Jakarta (ANTARA News) - Vice President Jusuf Kalla has signaled that the domestic fuel prices would rise by 30 percent.
"The government twice raised the domestic fuel prices, namely by 30 percent in March 2005, and by 120 percent in 2006," the vice president said at the National Development Planning Meeting 2008 (Musrenbangnas 2008) here on Tuesday.
He said when the government raised the fuel prices by 30 percent, the people staged rallies to protest against it for two weeks, while against the 120 percent hike people held rallies for only one week.
"This was so because, when the government raised the fuel prices the second time, it also implemented its policy of direct cash assistance (BLT)," Kalla said.
The vice president said the percentage of the fuel oil price increase this time would be similar to the first hike in March 2005.
Meanwhile, the House of Representatives (DPR) held a consultative meeting with the leaders of House factions and related commissions on Tuesday to discuss the government`s plan to raise fuel prices.
Besides the fuel prices hike, the meeting - chaired by House Speaker Agung Laksono - also discussed the mechanism to fill the void left by former House deputy speaker Zaenal Maarif.
Following the surge in the global crude oil price to over US$100 per barrel, the government is currently planning to raise domestic fuel oil prices.
Coordinating Minister for Economic Affairs Boediono said here on Monday the government would raise the prices of domestic subsidized fuel oil prices and also take steps to save energy.
The price hike policy was also tailored with a decision to provide a big compensation to the community of the lower economic bracket, Boediono told the press after a limited meeting at the presidential office here on Monday.
On the occassion, Boediono also said that the government would also cut back on fuel oil consumption and electricity by converting energy, electrical tariff calculation with incentives as well as the arrangement of electrical consumption at the government offices.