JAKARTA: Indonesia's presidential hopeful and ex-general Prabowo Subianto would consider eliminating costly fuel subsidies over a five-year period if elected president next month, the candidate's senior economic adviser said on Wednesday.
Fuel subsidies, which the government argues largely benefit the rich, cost the government around $20 billion a year and have put pressure on the current account deficit.
"The lifting of fuel subsidies cannot be done immediately because this will impose a burden on the mass population. Maybe this will be a five-year programme," Hashim Djojohadikusumo, a businessman who is Prabowo's brother, said at an investor event.
His comments are a departure from Prabowo's initial election platform to keep fuel prices at current rates but impose measures to ensure subsidies are used only by the poor and the lower middle class.
The new position is more in line with his rival, Jakarta Governor Joko "Jokowi" Widodo, who has said he would cut subsidies and raise fuel prices slowly over the next four to five years.
Outgoing President Susilo Bambang Yudhoyono raised fuel prices last year, but the issue is politically sensitive and attempts to go quickly have been met with strong resistance and demonstrations.
Analysts have warned that the budget deficit could hit the legally binding limit of 3 percent of gross domestic product if the government does not raise fuel prices this year.
Prabowo has trailed Jokowi for months in opinion polls, but the margin has recently narrowed. The presidential election is on July 9.
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