JAKARTA - The Indonesian government projected to increase domestic fuel price by up to 40 percent at the beginning of 2005, Vice President Jusuf Kalla said here Tuesday. "(The hike) is estimated at 40 percent," Jusuf Kalla told reporters. Kalla said a hike in oil price is unavoidable as the governmentwill be unlikely to maintain fuel subsidy at the current level.
Besides, the soaring oil price in the international market has increased costs because Indonesia must import oil to meet domesticdemand now. Earlier on Monday, Minister of Finance Jusuf Anwar said the hike will be most likely imposed at the beginning of 2005. He revealed that fuel subsidy in the state budget has reached 46 trillion rupiah (some 5.1 billion US dollars) as of November this year.