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40439
Tue, 01/13/2009 - 16:17
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News Focus: FUEL OIL PRICE CUTS EXPECTED TO MAKE OTHER GOODS CHEAPER
By Eliswan Azly
Jakarta, Jan 13 (ANTARA) - After announcing the lowering of the premium gasoline price to Rp4,500 from Rp5,000 per liter and the diesel oil price to Rp4,500 from Rp4,800 per liter, the government now expects the prices of electricity, some basic necessaries and services to drop accordingly.
On Monday (Jan 12), President Susilo Bambang Yudhoyono hinted at a possible cut in the basic electricity tariff (TDL) for industries during peak load hours but not for households, TV-One station said in its Tuesday morning's news broadcast.
"Hopefully, the reduction in TDL for industries will also lead to a downturns in the prices of goods and services as the TDL cut should logically speaking lower the industries' production casts. We hope the TDL cut will eventually result in the lowering of the retail prices of goods payable by the public," the president was quoted as saying on Monday.
The head of state said the cut in fuel prices would be followed by a 10 percent reduction in the transport fares set by the central government.
"The cut in transport fares will come into force also on January 15," he said.
In addition, Yudhoyono also expected the cut would lower beef prices to Rp50,000 from Rp62,000 per kg at present. "The price of meat depends on the market mechanism, but the government will encourages lower prices through these policies."
The government also announced an incentive scheme to lower the price of cooking oil from 10,000 to Rp7,000 per liter and provide a special allocation of cooking oil at Rp6,000 per liter to the poor.
Yudhoyono said the government was still discussing the lowering of milk and medicine prices. "However the price of kerosene will remain unchanged, namely Rp2,500 per liter," he said.
President Susilo Bambang Yudhoyono at a limited cabinet meeting on Monday also discussed ways to stabilize the prices of goods and services in the country.
The meeting was Attended by acting Coordinating Minister for Economy Sri Mulyani Indrawati, Coordinating Minister for People's Welfare Aburizal Bakrie, Coordinating Minister for Political, Legal and Security Affairs Widodo AS, Minister/State Secretary Hatta Rajasa, Home Affairs Minister Mardiyanto, Energy and Mineral Resources Minister Purnomo Yusgiantoro, Trade Minister Mari Elka Pangestu, Agriculture Minister Anton Apriantono, Transportation Minister Jusman Syafei Djamal, Maritime Affairs and Fisheries Minister Freddy Numberi, and State Minister for State Enterprises Sofyan Djalil.
The president at the meeting reminded the ministers of the need to study the impact of the fuel oil price cuts on the prices of basic necessaries and services.
Acting Coordinating Minister for Economy concurrently Finance Minister Sri Mulyani said she would study the impact of the fuel price cuts on the prices of basic necessaries and transport fares.
Sri Mulyani said all parties, the business community in particular, should be transparent and serious in helping realize the government's desire to have basic necessary prices and transport fares in the country lowered.
Therefore, she added, a meeting between the government and the business community under the supervision of Kadin would be held at the presidential office on January 12 to facilitate good communication between the two sides.
"It will be a two-way communication. The government has lowered domestic fuel oil prices and the business community should reduce the prices of other commodities accordingly without any excuse," Sri Mulyani said recently.
Following the announcement of the fuel oil price cuts, Transportation Minister Jusman Syafii Jamal said he had calculated that with the lower fuel oil prices, public transport faree could be slashed by up to 5.22 percent.
The minister, however, said the regional administrations would decide their own inter-city and inner city transport fares following the cuts in the fuel oil prices.
"Some regional administrations hve been quick to respond to the fuel oil price cuts and set new public transport fares," Jamal said.
"The West Java administration, for example, has proposed a 4 to 5 percent reduction in public transporat fares. The new fares are expected to be spplied soon," Jamal said.
With regard to the fuel oil price cuts , the Jakarta City Council had also proposed to the city's land transport operators organization (Organda) to reduce taxi fares, Tempointeraktif. com said.
The city administration approved the current cab fares - based on a Rp6,000 flag fall, Rp3,000 per kilometer and a Rp30,000 waiting fee per hour that were proposed by Organda in June this year in line with fuel price increases at that time.
"Now that the government has cut fuel prices and therefore taxis should also follow the suit," said Councilor Aliman Aat, the chairman of the Council Commission B on Economic Affairs recently.
Aliman said the administration's decree on taxi fares only regulated the highest rate. "So it may pave the way for lower rates and hopefully the fares should be 20 percent less than they are now or return to the level before the increase."
If Organda in Jakarta refused to the proposal, the Jakarta transportation council would have to find a better solution, Aliman said.
On a separate occasion, Jakarta Organda Chairman Herry Rotti admitted the recent fuel price cuts could affect the taxi fares. "But we have yet to discuss this."
Herry said taxi fares could be reduced by five percent maximally.
In the meantime, Indonesian Chamber of Commerce and Industry (Kadin) Chairman MS Hidayat also said recently that cuts in the prices of premium gasoline and diesel oil on Jan 15 will affect the prices of other basic necessaries and transport fares to go down.
Jakarta, Jan 13 (ANTARA) - After announcing the lowering of the premium gasoline price to Rp4,500 from Rp5,000 per liter and the diesel oil price to Rp4,500 from Rp4,800 per liter, the government now expects the prices of electricity, some basic necessaries and services to drop accordingly.
On Monday (Jan 12), President Susilo Bambang Yudhoyono hinted at a possible cut in the basic electricity tariff (TDL) for industries during peak load hours but not for households, TV-One station said in its Tuesday morning's news broadcast.
"Hopefully, the reduction in TDL for industries will also lead to a downturns in the prices of goods and services as the TDL cut should logically speaking lower the industries' production casts. We hope the TDL cut will eventually result in the lowering of the retail prices of goods payable by the public," the president was quoted as saying on Monday.
The head of state said the cut in fuel prices would be followed by a 10 percent reduction in the transport fares set by the central government.
"The cut in transport fares will come into force also on January 15," he said.
In addition, Yudhoyono also expected the cut would lower beef prices to Rp50,000 from Rp62,000 per kg at present. "The price of meat depends on the market mechanism, but the government will encourages lower prices through these policies."
The government also announced an incentive scheme to lower the price of cooking oil from 10,000 to Rp7,000 per liter and provide a special allocation of cooking oil at Rp6,000 per liter to the poor.
Yudhoyono said the government was still discussing the lowering of milk and medicine prices. "However the price of kerosene will remain unchanged, namely Rp2,500 per liter," he said.
President Susilo Bambang Yudhoyono at a limited cabinet meeting on Monday also discussed ways to stabilize the prices of goods and services in the country.
The meeting was Attended by acting Coordinating Minister for Economy Sri Mulyani Indrawati, Coordinating Minister for People's Welfare Aburizal Bakrie, Coordinating Minister for Political, Legal and Security Affairs Widodo AS, Minister/State Secretary Hatta Rajasa, Home Affairs Minister Mardiyanto, Energy and Mineral Resources Minister Purnomo Yusgiantoro, Trade Minister Mari Elka Pangestu, Agriculture Minister Anton Apriantono, Transportation Minister Jusman Syafei Djamal, Maritime Affairs and Fisheries Minister Freddy Numberi, and State Minister for State Enterprises Sofyan Djalil.
The president at the meeting reminded the ministers of the need to study the impact of the fuel oil price cuts on the prices of basic necessaries and services.
Acting Coordinating Minister for Economy concurrently Finance Minister Sri Mulyani said she would study the impact of the fuel price cuts on the prices of basic necessaries and transport fares.
Sri Mulyani said all parties, the business community in particular, should be transparent and serious in helping realize the government's desire to have basic necessary prices and transport fares in the country lowered.
Therefore, she added, a meeting between the government and the business community under the supervision of Kadin would be held at the presidential office on January 12 to facilitate good communication between the two sides.
"It will be a two-way communication. The government has lowered domestic fuel oil prices and the business community should reduce the prices of other commodities accordingly without any excuse," Sri Mulyani said recently.
Following the announcement of the fuel oil price cuts, Transportation Minister Jusman Syafii Jamal said he had calculated that with the lower fuel oil prices, public transport faree could be slashed by up to 5.22 percent.
The minister, however, said the regional administrations would decide their own inter-city and inner city transport fares following the cuts in the fuel oil prices.
"Some regional administrations hve been quick to respond to the fuel oil price cuts and set new public transport fares," Jamal said.
"The West Java administration, for example, has proposed a 4 to 5 percent reduction in public transporat fares. The new fares are expected to be spplied soon," Jamal said.
With regard to the fuel oil price cuts , the Jakarta City Council had also proposed to the city's land transport operators organization (Organda) to reduce taxi fares, Tempointeraktif. com said.
The city administration approved the current cab fares - based on a Rp6,000 flag fall, Rp3,000 per kilometer and a Rp30,000 waiting fee per hour that were proposed by Organda in June this year in line with fuel price increases at that time.
"Now that the government has cut fuel prices and therefore taxis should also follow the suit," said Councilor Aliman Aat, the chairman of the Council Commission B on Economic Affairs recently.
Aliman said the administration's decree on taxi fares only regulated the highest rate. "So it may pave the way for lower rates and hopefully the fares should be 20 percent less than they are now or return to the level before the increase."
If Organda in Jakarta refused to the proposal, the Jakarta transportation council would have to find a better solution, Aliman said.
On a separate occasion, Jakarta Organda Chairman Herry Rotti admitted the recent fuel price cuts could affect the taxi fares. "But we have yet to discuss this."
Herry said taxi fares could be reduced by five percent maximally.
In the meantime, Indonesian Chamber of Commerce and Industry (Kadin) Chairman MS Hidayat also said recently that cuts in the prices of premium gasoline and diesel oil on Jan 15 will affect the prices of other basic necessaries and transport fares to go down.
