Government ready to face house`s inquiry

"We are ready... the government will respond to it," he told reporters.

The government is now doing "various things" to prepare itself for the House inquiry. But he said he was not sure whether President Susilo Bambang Yudhoyono would personally come to the House when summoned for the inquiry.

The government would duly explain its position and arguments for raising the fuel oil prices in light of the reality that Indonesia needed 1.100 million barrels of oil per day, whereas its oil production was only 900,000 barrels per day so that it had to import 200,000 barrels per day.

"So, having to import 200,000 barrels per day, it is logical that every time the world oil price increases, the country will feel the impact. But the higher fuel oil prices are not only related with the world crude price but also with the fact that the fuel oil subsidy is 70 percent enjoyed by the rich as the subsidized fuel oils are used by cars and for non-automotive purposes so that the subsidy scheme has to be changed," Communication and Information Minister Mohammad Nuh said meanwhile.

The government raised domestic fuel oil prices in May as part of its efforts to reduce increasing subsidy amid the upward trend of the global crude prices which were hovering at US$120 a barrel, which could push up fuel subsidy to more than Rp125 trillion put a heavy burden on the state budget.

President Susilo Bambang Yudhoyono said on Wednesday the government recently increased domestic fuel oil prices by an average of 28.7 percent as it had estimated the world crude oil price would reach US$110-US$120 per barrel.

But now the president expressed concern as the ...