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Indonesia president expels Islamist party from coalition

By REUTERS

APRIL 4, 2012 10:08

JAKARTA - Indonesia's President Susilo Bambang Yudhoyono has expelled the Islamist PKS party from the ruling coalition after it opposed an increase in fuel prices, in a move aimed at boosting his authority in parliament.

The decision was announced overnight by a member of Yudhoyono's Democrat Party and followed a decision by PKS to join parliamentary opponents of a government plan for a 33 percent rise in fuel prices.

Parliament voted on Saturday to raise fuel prices under certain conditions despite worry that could boost inflation and trigger protests in Southeast Asia's largest economy.

Yudhoyono must step down in 2014 after serving two terms and is struggling to assert his authority over parliament ahead of an election seen as pivotal for a country that recently regained investment grade status from two ratings agencies.

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