Fuel Prices Will Rise When Compensation Ready: President

Jakarta 7 (Antara) - President Susilo Bambang Yudhoyono said he would raise the price of subsidized oil fuels when compensation for low income people have been available. Yudhoyono denied criticism that he had faltered in his decision to raise the price of subsidized oil fuels. The president was expected to announce the government decision on the oil fuel subsidy earlier this month but he said approval for a form of compensation for the poor had yet to be asked from the House of Representatives. The international rating agency Standard & Poor's has revised down Indonesian outlook from "positive to stable," on the government being not clear about its oil fuel subsidy and stalled reform. Observers said apparently the government has not firmly made up its mind about the options to cut oil fuel subsidy. One of the options was to raise the price of subsidized gasoline from Rp4,500 to Rp6,500 per liter for private cars, but later it was said the government will raise the prices without exception but for which a compensation is needed for low income people. On Tuesday the president said a meeting will be held with the House of Representatives on May 13 to discuss revision of economic targets in the state budget. "We did not want uncertainty over the state budget, oil fuel subsidy and the prices of oil fuels," he said at a cabinet meeting here on Tuesday. (*)