ORGANDA REJECTS INDONESIAN GOVT'S PLAN TO RAISE FUEL OIL PRICES.

JAKARTA, May 1 Asia Pulse - The Organization of Land Transportation Operators (Organda) in Indonesia has rejected the government's plan to raise fuel oil prices by 28.7 per cent in June.

"I absolutely reject the plan. Even now, transportation cost takes 30 per cent of our income per capita while in many developed countries, the portion is only 10 per cent," Organda chairman Murphy Hutagalung said here Wednesday.

The finance ministry was reported to be evaluating a plan to raise subsidized fuel oil prices by 28.7 per cent in June as the world oil price had soared to US$120 per barrel.

A source at the ministry said, the premium oil price was expected to be increased from Rp4,500 currently to Rp6,000 per liter,diesel oil from Rp4,300 to Rp5,500 and kerosene from Rp2,000 to Rp2,300 per liter.

The increases would enable the government to save up to Rp25.877 trillion (US$2.8 billion) in subsidy funds from the state budget.

Murphy said, fuel oil price increases were normally always followed by hikes in transportation rates. But under the current circumstances where people's purchasing power had declined, operators could not raise their rates.

At the same time, public transportation ...