Government undecided over fuel price increase<\/p>\n
JAKARTA (JP): The government is undecided on whether to
\nincrease fuel prices in April this year as planned in the 2001
\nstate budget, a minister said on Wednesday.<\/p>\n
Minister of Energy and Mineral Resources Purnomo Yusgiantoro
\nsaid his office had prepared a proposal for the fuel hike but it
\nstill needed the approval of the Cabinet and the House of
\nRepresentatives.<\/p>\n
He said the Cabinet would hold a meeting next week to discuss
\nthe proposal.<\/p>\n
\"We have completed the proposal and prepared everything (for
\nthe fuel hike), but it is not yet final. There are still other
\naspects to be considered,\" he said after a ceremony to install
\nnew first echelon officials at the ministry here.<\/p>\n
Purnomo said the government should also consider the possible
\nsocial and political consequences of the policy in deciding to
\nraise fuel prices.<\/p>\n
The 2001 state budget projects fuel prices to be increased by
\n20 percent in April this year.<\/p>\n
The government decided to reduce the fuel subsidy by gradually
\nincreasing the prices as part of an agreement with the
\nInternational Monetary Fund which is providing a multibillion
\ndollar bailout package to help revive Indonesia's ailing economy.<\/p>\n
In October last year, the government increased fuel prices by
\nan average of 12 percent after a delay in April due to public
\nprotests.<\/p>\n
The increase reduced the fuel subsidy by Rp 800 billion (US$
\n84.2 million).<\/p>\n
Increasing fuel prices had always been a sensitive issue in
\nIndonesia, whose citizens are still struggling to cope with the
\nlingering economic crisis.<\/p>\n
In 1998, when the crisis reached its peak, the government's
\ndecision to raise fuel prices resulted in mass protests, which
\ncontributed to the downfall of former president Soeharto.<\/p>\n
Restructuring<\/p>\n
Purnomo installed on Wednesday eight new senior officials for
\nthe ministry as part of the restructuring of the ministry's
\norganization.<\/p>\n
The eight officials were appointed through two presidential
\ndecrees, respectively signed by President Abdurrahman Wahid and
\nVice President Megawati Soekarnoputri.<\/p>\n
The ministry's directorate general of mining has been merged
\nwith the directorate general of geology and mineral resources
\nfollowing the implementation of Law No. 22\/1999 on regional
\nautonomy, which transfers the role of managing mining industry
\nfrom the ministry to the regions.<\/p>\n
Former director general of mining Surna Tjahja Djajadingrat
\nwas appointed head of the ministry's education and training
\ncenter, while Felix Simon Sembiring, who is in charge of
\nsupervising mining investors in the directorate, was promoted to
\nbecome head of the ministry's research and development center.<\/p>\n
Djoko Darmono was reappointed as secretary-general, while
\nRachmat Sudibjo was renamed the director general of oil and gas.<\/p>\n
Surjantoro, former director general of geology and mineral
\nresources, has become coordinator of the minister's expert staff,
\nwhile Endro Utomo Notodisuryo, former director general of
\nelectricity and energy development, has been named inspector
\ngeneral.<\/p>\n
Luluk Sumiarso took over from Endro as director general of
\nelectricity and energy utilization, while Wimpy S. Tjetjep
\nreplaced Surjantoro as director general of geology and mineral
\nresources. (tnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-undecided-over-fuel-price-increase-1447893297",
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"sponsor": "Okusi Associates",
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