Jokowi unveils hefty increase in fuel prices to fix ailing economy

Jakarta

INDONESIAN President Joko Widodo on Monday raised fuel prices to free up funds for ports and programmes for the poor, fulfilling an election pledge to curtail a decades-old subsidy that has constrained government finances.

The price of subsidised petrol will increase to 8,500 rupiah (S$0.90) a litre from 6,500 rupiah effective from Tuesday, Mr Joko, who is also popularly known as Jokowi, told reporters in Jakarta on Monday. Diesel will rise to 7,500 rupiah a litre from 5,500 rupiah, he said.