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Indonesian Government Confirms Distribution of First-Stage Fuel Compensation
Tuesday, 27 September, 2005 | 18:35 WIB

TEMPO Interactive, Jakarta:The Indonesian government confirmed that the compensation funds on the fuel price hike for the underprivileged has been distributed appropriately in the first stage in order to prevent possible conflicts resulting from the government’s policy to increase fuel prices starting October 1, 2005.

“We have publicized this matter and we have assured the people that the first-stage compensation would be distributed,” said Coordinating Minister for Politics, Law and Security Widodo AS on Tuesday (27/09) in Jakarta when asked about the government’s hope to settle the unrest within society following the fuel price hike.

In addition to ensuring the distribution of the first-stage compensation, the government also made preparations for the second-stage compensation in form of cash subsidies.

Regarding the scarcity of fuel as we approach October 1, Widodo said that it was the government’s obligation to guarantee the availability of fuel. “I think that if we are forced to carry out the fuel price hike, this should be related to our efforts to guarantee fiscal continuity and other matters,” Widodo said. However, the government also guarantees the availability of fuel needed for the public.

Regarding the reason for the fuel scarcity, Widodo was of the opinion that possibly this was either due to the stockpiling of fuel or the small stock of fuel. (Sunariah-Tempo News Room)