(Insider News) - The Indonesian government and public transport associations have agreed to cap the fares' hike at 15% after Susilo Bambang Yudhoyono administration hiked fuel prices late last week. 

The government on June 22 hiked low-octane gasoline price by 44% to IDR6,500 a liter and diesel fuel by 22% to IDR5,500 per liter to avoid its budget deficit implodes and keep oil imports in check.

The higher fuel prices, however, have prompted many transport operators to hike fares. The associations of land and sea transport have agreed to cap fare hike at 15%, Transport minister E.E. Mangindaan said.

The increase is expected not be too burdening to the public while the profit margin for bus and ferry owners can keep them staying afloat. The agreement, signed on Sunday, is expected to give more certainty to the general public.