some of the reasons why the government made the decision to rise fuel prices:
one.
the fuel prices in indo has been much lower the market price for years. government has been subsadising fuel for years. "as indonesia has become a net oil importer amid rising fuel consumption, declining oil production and soaring global oil prices recently hit us$70 a barrel, the fuel subsidies would have ballooned well over Rp 110 trillion to keep the fuel prices at their current levels." - the jakarta post
two.
"susilo personally did not want to increase fuel prices, but the tough decision was a must if the nation was to avert bankruptcy, from spending too much on the fuel subsidy." - the jakarta post
measures taken to help the poor cope with new fuel prices:
one.
"the government also issued five incentive packages, which include discounts for certain products, trade reform regulations, public transportation reform, an increase in the minimum price of unhusked rice paid to farmers and a direct subsidy for the poor." - the jakarta post
two.
"in march, the government made available Rp 17 trillion directed at easing the plight of the poor, and supposedly used that money to improve education, health services and rural infrastructure. with this new package of aid, the total bill for the year in extra benefits for the poor will reach rp 30 trillion." - the ja
three.
"after completing the poverty registration, the government has promised to give each of the 15 million low-income families monthly payments of rp 100,000 (approximately US$10) beginning next month to help ease their economic burden from the price rises." - the jakarta post