Indonesia May Cut Diesel Price in January, Koran Tempo Reports

By Aloysius Unditu

Dec. 3 (Bloomberg) -- Indonesia may reduce the price of diesel in January after the decline in crude prices from record levels, Koran Tempo reported, citing Vice President Jusuf Kalla.

The newspaper didn’t elaborate on the terms of the possible price cut. Reducing diesel prices would help Indonesians cope with the global financial crisis and maintain their purchasing power, Kalla was cited as saying.

Indonesia cut gasoline prices by 8.3 percent to 5,500 rupiah (45 cents) a liter, from 6,000 rupiah, starting on Dec. 1, the newspaper reported.

To contact the reporter on this story: Aloysius Unditu in Jakarta at aunditu@bloomberg.net