Jakarta. President Joko Widodo has signalled the government will lower fuel prices in the near future — the second adjustment since slashing fuel subsidies last year.
"In the near time, the [subsidized] fuel price will go down. It [will be] around Rp 6,400 to Rp 6,500 based on our estimation," Joko said during a keynote speech at an event on Thursday at Hotel Borobodur sponsored by one of his political backers, Surya Paloh.
The president did not give an exact date for the change, but said it could be "in the next one or two months, as soon as possible."
Joko slashed fuel subsidies by an average 33.6 percent not long after he took office in October last year. Many economists and commentators, who were worried about the subsidies' cost to the state budget, applauded the move.
Prices rose to Rp 8,500 per liter for Premium and Rp 7,500 per liter for subsidized diesel.
On Dec. 31 last year the price was lowered back to Rp 7,600 per liter for Premium and Rp 7,250 per liter for Solar.
Bringing the price down to about Rp 6,500 per liter would see prices roughly in line with when Joko first took office.
During his address Joko urged distributors and businessmen to lower the price of daily goods and transportation to correspond with the fuel price drop.
"I will chase the distributors and businessmen to lower the price of daily goods and transportation," he said.