Joko Widodo's push to raise Indonesia fuel prices suffers setback: Antara
Published on Aug 28, 2014 4:27 PM
JAKARTA (Reuters) - Indonesian President-elect Joko Widodo's drive to fast-track an increase in fuel prices, one of his key election pledges, has stumbled after incumbent President Susilo Bambang Yudhoyono said the conditions were not right at the moment to cut subsidies.
Mr Joko and Dr Yudhoyono held a two-hour, closed door meeting on the resort island of Bali on Wednesday.
Atop Mr Joko's agenda when he assumes the presidency on Oct 20 is to address a ballooning fuel subsidy bill that is eating up an already tight budget and threatening investor confidence by widening the current account deficit.
Mr Joko and Dr Yudhoyono had discussed the possibility of introducing a fuel hike as early as September, two sources close to the matter told Reuters last month. "Last night I specifically requested (Dr Yudhoyono) to narrow the budget deficit by raising fuel prices," Mr Joko was quoted by Antara news agency as saying. "He conveyed that conditions are not right at the moment to raise (fuel prices)."
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