President Joko 'Jokowi' Widodo has announced new subsidized-fuel prices that will take effect on Tuesday.

Speaking at the Merdeka Palace in Jakarta on Monday evening, Jokowi said the new price for subsidized Premium gasoline would be Rp 8,500 (69 US cents) per liter, up from Rp 6,500, while diesel would sell at Rp 7,500 per liter, up from Rp 5,500.

'The new prices of the subsidized fuel will be valid starting from midnight,' he said as quoted by Antara news agency in Jakarta on Monday.

Jokowi said the raising of the subsidized fuel prices was being carried out by the government in order that it could increase funding for sectors that were much more beneficial to the Indonesian people.

'The decision to transfer the fuel subsidies to a number of productive sectors is aimed at creating a budget that is more useful for the Indonesian people overall,' he said in a press conference.

The President added that the state needed greater budgetary allocations for infrastructure, education and health development. Unfortunately, those three sectors had often faced funding shortages due to lavish spending on fuel subsidies.

In the press conference, it was also announced that the price of kerosene would remain unchanged at Rp 2,500 per liter.

President Jokowi said following the subsidized-fuel price hike the government would provide low-income families with several social protection cards, comprising the Indonesian Health Card (KIS), the Indonesian Smart Card (KIP) and the Prosperous Family Card (KKS).

'It is part of our efforts to maintain the people's purchasing power and to start various activities in the productive economy,' he said. (ebf)(++++)