Joko Widodo's party says fuel price hike will divert financial crisis

Joko Widodo's party says fuel price hike will divert financial crisis
President-elect Joko Widodo.

The Indonesian Democratic Party of Struggle (PDI-P) says that it supports a fuel price increase because Indonesia was on the verge of a financial crisis.

The PDI-P's stance in supporting fuel price increases has raised eyebrows, since the party repeatedly rejected efforts to increase fuel prices during the administration of President Susilo Bambang Yudhoyono.

PDI-P chairwoman Megawati Soekarnoputri told reporters on Friday that the party's change in stance was due to logical reasons and not because of political interests.

"The PDI-P did not reject [in Yudhoyono's era] without a concrete reason. We calculated carefully, so do not say that we are not consistent," she said after the dissolution of president-elect Joko "Jokowi" Widodo's campaign team in Jakarta (see photo below).

She said the government's financial condition would continue to deteriorate if it did not eliminate the fuel subsidy.

"The state budget is in deficit, while the government cannot get additional income," she said, adding that during the past 10 years, the PDI-P had been steadfastly pro-people.

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