Jakarta - The Indonesian government plans to cut the retail prices of
premium gasoline by more than 6 per cent from December 1 to combat an
economic downturn and to reflect falling global oil prices, media
reports said Friday.

Finance Minister Sri Mulyani Indrawati said a plan to reduce
premium gasoline was aimed at easing inflation and spurring economic
growth.

The 500-rupiah (5-US-cent) cut would bring the price of premium
gasoline to 5,500 rupiah per litre, but the government plans to keep
the prices of subsidized diesel and kerosene unchanged.

"The decrease is expected to revive consumer spending as well as
the business climate," Indrawati was quoted by the Jakarta Post as
saying, adding that the government was responding to public demand for
cheaper fuel. "This will also counter the impact of the global
financial crisis on our economy."

To reduce the country's multibillion-dollar subsidy scheme, the
government in March raised domestic fuel prices by an average of 28.7
per cent as oil prices skyrocketed on the world markets.

The move triggered street protests across the world's
fourth-most populous nation and led to a decline in the popularity of
President Susilo Bambang Yudhoyono.

Indrawati said the government would evaluate premium gasoline
prices monthly to keep domestic price in line with global crude prices.
(dpa)