Indonesia planning fixed petrol subsidy by 2016: official

Jakarta

INDONESIA'S finance ministry plans to propose a fixed petrol subsidy of 1,000 rupiah (11 Singapore cents) to 2,000 rupiah a litre, said a government official who asked not to be identified because the discussions are private.

The ministry will submit the proposal to President Joko Widodo soon, according to the official, who has seen the plans. The fixed-subsidy system may be implemented in 2016, unless Mr Joko wants to do it earlier, the official said.

Mr Joko raised fuel prices last week to reduce state energy subsidies, acting on an election pledge to free funds for development spending and boosting optimism he's taking steps to overhaul South-east Asia's largest economy. A shift to a fixed subsidy would insulate the governme…