The Indonesian government was scheduled to announce new fuel price hikes at 10:00 p.m. (local time) on Friday after the relevant decree was signed by President Susilo Bambang Yudhoyono, a minister said here on Thursday.

According to Coordinating Minister for the Economy Aburizal Bakrie, out of a fuel subsidy allocation of 89 trillion rupiahs ( some 8.9 billion US dollars), as approved by the House of Representatives, 78 trillion rupiahs (some 7.8 billion US dollars) had already been spent.

The remaining 11 trillion rupiahs (some 1.1 billion US dollars) would be disbursed over the next three months based on subsidies of between 800 rupiahs (some 0.08 US dollar) and 1,000 rupiahs ( some 0.1 US dollar) per liter, he was quoted by the state-owned news agency Antara as saying.

"Kerosene will continue to receive the highest subsidy, while the subsidies for diesel and premium gasoline will be reduced so as to bring their prices roughly up to economic prices," Aburizal said.

The minister said that it was expected that kerosene would be sold at its economic price by 2007, while diesel and premium gas prices would reach economic levels by the end of next year.

"After reaching their economic prices, they will later be adjusted up to the market price," he added.

Thousands of people staged rallies in major cities across Indonesia on Thursday ahead of the announcement of fuel price rise, demanding the government to drop the plan and voicing dissatisfaction against the Susilo Bambang Yudhoyono government.

Source: Xinhua