medcom.id, Jakarta: The House of Representatives Budget Committee and the government recently agreed to lower diesel fuel subsidy from Rp1,000 to Rp500 per liter in the revised 2016 state budget.
The Ministry of Energy and Mineral Resources stated that the government will save Rp4 trillion from the subsidy cut.
"Subsidy for one year is Rp16 trillion. We still have six months," said the ministry's director general of oil and gas IGN Wiratmaja Puja on Friday (6/17/2016).
He explained that the government can maintain diesel fuel prices until the end of the year. "As long as oil prices are stable," he added.
The government initially proposed diesel fuel subsidy to be lowered from Rp1,000 to Rp350 per liter.
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