Jakarta (Antara Bali) - The government would save up to Rp95 trillion in fuel subsidy if it raised the price of subsidized oil fuel as planned, an economist said.
Wijayanto Samirin, the executive director of Paramadina Public Policy Institute, said here on Sunday that the government has indicated to raise the price of subsidized gasoline to Rp6,500 per liter from Rp4,500 at present.
"The price of Rp6,500 is quite ideal. The impact of the price hike on inflation could still be tolerated," Wijayanto said.
Earlier President Susilo Bambang Yudhoyono said the price hike is needed to help reduce the deficit in the state budget, but the price would be raised only when compensation for the country's poor is made available. (IGT)
