Thursday, March 29, 2012

Indonesian parliament to decide on fuel price hike

As the Indonesian government needs to rise the subsidized oil price, the House of Representatives will have their plenary meeting tomorrow to decide. (FOTO ANTARA/Andika Wahyu)

Jakarta (ANTARA News) - The Indonesian House of Representatives (DPR) is scheduled to decide on the controversial proposed fuel price hike during a Friday plenary meeting.

This was announced following a meeting between the government and the DPR's Budget Committee here on Thursday.

In the plenary meeting on March 30, the DPR will vote on article 7, paragraph 6A, of the bill on the 2012 revised budget that states if the average Indonesia Crude Price (ICP) is higher or lower than five percent of the assumption of the 2012 revised budget, then the government has the authority to adjust the price of subsidized fuels and its supporting policy.

The average price of Indonesian crude within a period of time is based upon the average price of Indonesian crude during the past thirty days.

In the 2012 revised budget, the government set the ICP at US$105 per barrel, which is higher than the 2012 budget assumption at US$90 per barrel.

A Budget Committee member from the National Mandate Party (PAN), Laurens B Dama, said all party factions are ready to vote on the article.

"Tomorrow all factions will vote on it," he said.

The vote must be carried out because three factions had earlier expressed their objection to the article; the Indonesia Democratic Party Struggle (PDIP), the Great Indonesia Movement Party (Gerindra) and the People's Conscience Party (Hanura).

Six factions that agreed with the article are the ruling Democrat Party, the Golkar Party, the United Development Party (PPP), PAN, the National Awakening Party (PKB) and the Prosperous Justice Party (PKS).

Factions in the government's coalition, including the three factions that have rejected the article on adjustment, have agreed on article 7, paragraph 6 that states that the retail price of subsidized fuels will not be raised.

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