LEGISLATOR HOPES GASOLINE PRICE CUT TO FURTHER STIMULATE REAL SECTOR

Jakarta, Nov 7 (ANTARA) - A legislator said it was hoped the government's decision to lower the price of subsidized gasoline will provide a further stimulus to the real sector.

"The gasoline price cut will hopefully have a positive impact on households and industry," said Sutan Bhatoegana, vice chairman of the House of Representatives (DPR)'s Commission VII, here Friday.
He said the government's decision to lower the price of subsidized premium gasoline as of December 1, 2000 should be appreciated.
Earlier, the chairman of the House's Commission VII, Airlangga Hartarto, asked the government to explain transparently how it had set the gasoline price reduction at Rp500 per liter effective December 1.
He said the gasoline price cut should be followed by a transparent explanation by the government about the mechanism it had used to set the new price so that the public would have a good understanding of the price change.
The Rp500 cut in the price of fuel oil per liter as of December 1 was actually in line with suggestions previously made by the House.
During previous discussions on the issue between the House and the government, it was agreed that if the Indonesian crude price approached a level of US$60 per barrel, the government needed to make an adjustment in the domestic fuel price.
Economic Affairs Coordinating Minister Sri Mulyani announced here on Thursday that the government would lower the price of subsidized premium gasoline from Rp6,000 to Rp5,500 per liter on December 1, 2008.
A lowering of Indonesia's domestic fuel oil price has happened before, namely on December 21, 2003 under the Megawati Soekarnoputri presidency.