{
    "success": true,
    "data": {
        "id": 1663995,
        "msgid": "economists-industry-needs-to-refine-strategy-to-address-energy-price-dynamics-1775641922",
        "date": "2026-04-08 15:48:21",
        "title": "Economists: Industry needs to refine strategy to address energy price dynamics",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Economy",
        "summary": "Economists Mohammad Faisal and Bhima Yudhistira Adhinegara have urged Indonesian industries to develop robust strategies for production and distribution to counter the volatility in global energy commodity prices driven by geopolitical tensions. They highlight that rising energy costs are significantly increasing operational expenses, production costs, and producer-level inflation, which could be passed on to consumers, potentially straining limited purchasing power amid imported inflation in sectors like food and beverages. Recommendations include reducing VAT to 9 percent, ensuring sufficient energy subsidies through budget reallocation, supporting industrial investments, and maintaining currency stability to mitigate excessive import raw material fluctuations.",
        "content": "<p>Jakarta (ANTARA) - Executive Director of the Center of Reform on\nEconomics (CORE) Indonesia, Mohammad Faisal, believes that the\nindustrial sector needs to mature its strategies related to production\nand product distribution in response to the dynamics of global energy\ncommodity prices resulting from the current geopolitical situation.<\/p>\n<p>Faisal, when contacted in Jakarta on Wednesday, stated that in\ngeneral, the rise in energy commodity prices has a significant impact on\nincreasing operational costs, production costs, and inflation at the\nproducer level.<\/p>\n<p>\u201cThis could lead to an increase in the selling price of processed\nproducts, meaning it is transmitted to prices at the consumer level,\u201d\nsaid Faisal.<\/p>\n<p>In agreement, Executive Director of the Center of Economic and Law\nStudies (Celios), Bhima Yudhistira Adhinegara, said it is important for\nindustry to consider the limitations of public purchasing power.<\/p>\n<p>He stated that currently, industry has already been affected by\nimport logistics costs following the use of international oil references\nby transport ships.<\/p>\n<p>\u201cImported inflation from the producer side will be passed on to end\nconsumers. For example, in the food and beverage sector,\u201d he said.<\/p>\n<p>Furthermore, Bhima predicted price adjustments due to ongoing\nproduction cost pressures in the next 2-3 months, even though the\nescalation from the war is beginning to subside.<\/p>\n<p>\u201cThe recommendations are four. First, immediately reduce the VAT rate\nto 9 percent from 11 percent as a stimulus for consumers and business\nactors. Then, ensure that the energy subsidy budget is sufficient so\nthat energy inflation can be prevented. This requires budget\nreallocation from non-urgent programmes,\u201d said Bhima.<\/p>\n<p>\u201cThird, assist in realising investments in the industrial sector,\nboth by Danantara and the private sector, and maintain exchange rate\nstability to avoid excessive fluctuations in imported raw materials,\u201d he\nadded.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/economists-industry-needs-to-refine-strategy-to-address-energy-price-dynamics-1775641922",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}