Jokowi Goverment to Raise BBM Price in November: Chairul

Jakarta (Antara) - Coordinating Minister for Economy Chairul Tanjung has said the new government under (president elect) Joko Widodo (Jokowi) is expected to raise the prices of subsidized oil fuels next month. "Information I have from the economic team of the next government, thanks God, that they will raise the price of BBM in November," Chairul said after attending a ceremony of the National Economic Committee on Economic Prospects , 2015 here on Friday night. With the price hike, the use of BBM is expected to decline that the consumption of both premium gasoline and diesel oil would not exceed the quota of 46 million kiloliters for this year, he said. "Demand for subsidized premium gasoline and diesel oil would decline," he said. He said if the BBM prices are raised, the new government is the one to make program of compensation for the economic and social impacts. The present government will only allocate a compensation fund of Rp5 trillion in the revised 2014 state budget, he added. Jokowi, who is to be installed on Oct 20 has indicated plan to raise the price of subsidized BBM, but he had not given figure or time . "It is still being calculated and the time is yet to be fixed," Jokowi once said. Some economists said it would be better if Jokowi raised the prices before the end of this year to show to the market the commitment for structural reform. Chief economist of Bank Mandiri Destry Damayanti said delaying plan to raise the BBM price until 2015 would create negative sentiment.(*)