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Jakarta (ANTARA News) - The World Bank supports the government`s step to raise subsidized fuel oil prices because the policy will help maintain the credibility of the state budget, Syahrial Loetan of the National Development Planning Board (Bappenas) said.

Syahrial Loetan made the remarks after accompanying State Minister for National Development Plan/Head of National Development Planning Baord (Bappenas) Paskah Suzetta in receiving World Bank Representatives in Jakarta, Joachim con Amsberg, here on Sunday.

"The Bappenas head also explained his guest the government`s policy of raising fuel oil prices gradually," he added.

The World Bank opined that the policy was good because it could educate the people, Syarial said.

"What is important is that the subsidy must be received by the right people in the society," he said quoting the World Bank officials as saying.

In the meantime, Minister Suzetta said that his side was discussing the possibility of the disbursement of additional loans for on-going projects affected by fuel oil prices.

"This is because there is a price escalation in projects affected by fuel oil price hikes. Actually, the choice that has to be taken is to reduce fuel consumption for projects, or to increase the amount of loans," the minister added.

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