Indonesia MPs seal fuel price hike after backing help for poor

Anti-riot police fire tear gas to disperse student demonstrators protesting against the government's plans to raise fuel prices in Makassar, South Sulawesi June 17, 2013. REUTERS/Yusuf Ahmad

JAKARTA (Reuters) - Indonesia's parliament paved the way on Monday for a jump in gasoline and diesel prices after months of delay that have undermined confidence in the government and the ability of Southeast Asia's biggest economy to continue growing rapidly.

The average 33 percent price rise will cut the government's costly fuel subsidies and could give support to the struggling rupiah after the central bank scrambled last week to prop up the currency as it was caught in an emerging market selloff.