Indonesia will raise gasoline and diesel prices starting on Saturday, the industry minister said, taking a small step to alleviate burdensome fuel subsidies that have undermined confidence in Southeast Asia's largest economy.
"The fuel hike will be announced on Friday at midnight and effective after it is announced," M.S. Hidayat told reporters on Thursday.
Under the government plan, approved by parliament this week, gasoline prices will rise by 44 percent and diesel by 22 percent. Despite the hike, Indonesia will still have one of the cheapest fuel prices in Asia.