Indonesia to cut fuel subsidies to balance budget

Indonesia will soon raise fuel prices by up to 30 percent to avoid a budget blowout amid the soaring cost of oil on the global market, the government said Monday.

The decision to cut subsidies that keep gasoline, diesel fuel and kerosene affordable to the country's millions of poor risks nationwide demonstrations and political opposition from parties jockeying for position ahead of elections next year.

The government last raised prices in 2005, defying protests and winning praise from international donors. To cushion the blow, it provided direct cash payments to the poor _ a policy it is sure to repeat this time around.

President Susilo Bambang …