Jakarta. Indonesia's government has confirmed it will set a new price for subsidized fuel on New Year's Day following a major slump in world oil prices.
Indonesia raised subsidized fuel prices by an average 33.6 percent in November in a bid to shift subsidy spending to productive sectors, but the move faced criticism from some due to plummeting world oil prices.
The international price for Brent crude settled down $1.57 at $57.88 early on Tuesday.
Coordinating Minister for the Economy Sofyan Djalil was coy about the details of the new policy, but he said he hoped the new price would be long-term figure.
"We will let the people know in January so they can buy fuel at the new price in the New Year," he said on Tuesday.
Indonesians now pay Rp 8,500 per liter for Premium and Rp 7,500 per liter for subsidized diesel. Previously, Premium was sold at Rp 6,500 per liter and subsidized diesel at Rp 5,500 per liter.
Sofyan also hinted the price change could come hand in hand with a fixed subsidy policy, so prices would not be "held hostage" by fluctuations in oil prices and exchange rate values.