Thursday, January 2, 2003
Indonesians face series of price hikes
Agence France-Presse Jakarta, January 2
Indonesians are grappling with a series of new year price rises after the government raised fuel prices by up to 22 percent effective on Thursday. Electricity and telephone charges have also been raised.
The fuel price rise is part of a continuing effort to reduce costly fuel subsidies and shrink the budget deficit.
Top economy minister Dorodjatun Kuntjoro-Jakti, quoted by the Kompas daily, said the subsidies had only encouraged inefficient use and environmental damage.
The subsidy cuts, he said, would give the government the opportunity to promote growth.
Kerosene, which is widely used by the poor as a cooking fuel, remains heavily subsidised for domestic use.
Electricity charges were increased by six percent starting Wednesday and three further quarterly raises of six percent will follow later this year. Telephone charge increases averaging 15 percent also became effective on Wednesday. The rates were last raised in February last year.
The price of liquefied petroleum gas for domestic use was raised by 12.5 percent effective last month. Increases in train and shipping fares and toll fees are also planned.
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