Bloomberg News

Indonesia Won’t Raise Subsidized-Fuel Price in 2012, Meking Says

October 11, 2011

Oct. 11 (Bloomberg) -- Indonesia will maintain 2012 subsidized-fuel prices at this year’s level, Melchias Mekeng, head of the parliament’s budget committee, said during a meeting with the government in Jakarta today.

Finance Minister Agus Martowardojo and the committee agreed to the pricing structure, Meking said. They also agreed to keep the volume of subsidized fuel at 40 million kiloliters, valued at 123.6 trillion rupiah ($13.8 billion), as previously proposed, Vice Finance Minister Anny Ratnawati told reporters after the meeting.

Indonesia’s central bank unexpectedly cut its benchmark interest rate today for the first time in more than two years to spur growth as the global recovery weakens and inflation slows.

Bank Indonesia lowered the reference rate by a quarter of a percentage point to 6.5 percent, joining emerging-market nations Brazil, Turkey, Russia and Pakistan in reducing borrowing costs this year.

--Editor: Greg Ahlstrand

To contact the reporter on this story: Novrida Manurung in Jakarta at nmanurung@bloomberg.net

To contact the editor responsible for this story: Greg Ahlstrand at gahlstrand@bloomberg.net


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