Indonesia Announces US$1.84 Billion In Fuel Price Compensation

JAKARTA, March 28 (Bernama) -- A total US$1.84 billion (Rp17 trillion) in direct compensation will be given to the people following the Indonesian government's plan to raise the prices of subsidised fuel, next month. Other than the allocation, US$870.22 million (Rp8 trillion) more had been provided in compensation for rural infrastructure, the Kompas daily reported Wednesday. The compensation will be paid every month for six months until the amount reaches US$1.84 billion. Prior to this, the government announced it would pay temporary direct aid of US$16.31 (Rp150,000) a month to 18.5 million households for nine months following the proposed increase in fuel prices, involving an expenditure of Rp25.56 trillion. However, at a committee meeting last night, the nine months period was deemed too long and was reduced to six months on a US$1.84 billion allocation. On Thursday, the House of People's Representatives would decide if the prices of fuel would be raised by US$16.31 next month. The government's proposal, which was made following the hike in the price of oil in the global market, raised protests from various groups, which, since Tuesday, had held massive demonstrations. Generally, the demonstrations were peaceful, but some incidents of clashes took place when stones and Molotov cocktails were used, forcing the police to resort to using tear gas and water cannons. A number of demonstrators have been arrested. The nationwide demonstrations continued Wednesday and is expected to be bigger on Thursday. (US$1 = Rp9,193.00) -- BERNAMA