Indonesian government to review fuel price hike
Updated
Indonesia's parliament has voted to review the government's 30 per cent fuel price hike after 21 people were injured in violent student-led protests.
Ministers have been told to prepare a strong defence of the fuel price policy as the administration comes under mounting pressure over rising inflation ahead of elections next year.
The unpopular price hikes have calmed investors' nerves over the state of the country's budget deficit, but they have fuelled domestic unrest.
On Tuesday, riot police used water cannons to break up a violent demonstration by about 1,000 protesters.
President Susilo Bambang Yudhoyono has said the price rise was vital to rein in the cost of a multi-billion-dollar subsidy scheme, which was ballooning on the back of high oil prices.
