Subsidized fuel price likely to increase

The government may raise the price of subsidized fuels if the benchmark Indonesian Crude Price (ICP) soars above US$84.7 per barrel this year, according to the proposed revised 2010 state budget.

"Under an estimate, if the average Indonesian Crude Price in one year has an increase of more than 10 percent than the assumed price in the revised 2010 state budget, the government is authorized to adjust the price of subsidized fuels," Article 7 in the proposed 2010 budget said.

In the proposed budget, the ICP has been raised to $77 per barrel from $65 stated in the initial 2010 budget.

The government has yet to make a comment on this issue.