JP\/13\/fuel<\/p>\n
The Jakarta Post
\nJakarta<\/p>\n
Bank Indonesia is asking the government to carefully consider the
\ntiming of its plan to raise domestic fuel prices next year, so as
\nto keep its effect on the country's inflation rate within
\nmanageable limits.<\/p>\n
"I agree with recent suggestions that the hike be done during
\nharvest time," the central bank's deputy governor Hartadi Sarwono
\nsaid on Friday.<\/p>\n
"It would also be better if the government decided to raise
\nfuel prices when the rupiah exchange rate was at a better level."<\/p>\n
Hartadi explained that if the hike was done during the harvest
\ntime, then a lower price of staple food items during that time
\ncould counterbalance a possible rise in the prices of other goods
\naffected by the fuel price hike.<\/p>\n
A stronger local unit, meanwhile, would mean that the price of
\nimported goods could be maintained, averaging out inflation as
\nwell. The rupiah, however, weakened 0.4 percent to Rp 9,066 per
\ndollar on Friday.<\/p>\n
"Pressure on inflation could further be relaxed if the
\ngovernment could ensure the distribution of goods, particularly
\nof staple needs. The problem is that many producers and
\ndistributors tend to raise their prices whenever a fuel price
\nhike occurs, even when it doesn't have anything to do with their
\ncost of production," Hartadi said.<\/p>\n
"The government should also properly channel fuel subsidy
\nfunds it will save from the hike for health, educational, and
\ninfrastructure development purposes."<\/p>\n
Hartadi added that the central bank would not be too hasty in
\nmaking any monetary policies, such as adjusting its SBI benchmark
\ninterest rate, to counter a possible rise in the inflation.<\/p>\n
"As long as core inflation maintains its current stable trend,
\nthen we see no need for such an intervention," he said.<\/p>\n
The core inflation rate is the underlying inflation rate of a
\ncountry's economy, excluding volatile energy and food prices.<\/p>\n
The Central Statistics Agency earlier this month reported a
\nyear-on-year inflation rate of 6.18 percent as of November. The
\ngovernment has set its inflation target at 7.0 percent for this
\nyear, and at 5.5 percent for 2005.<\/p>\n
Meanwhile, Coordinating Minister for the Economy Aburizal
\naffirmed that the government would raise fuel prices in the first
\nquarter of next year, sometime during harvest time.<\/p>\n
"But we are still working out the available options and we'll
\nconsult with the House of Representatives, because what is good
\nfor the state (budget) is not necessarily good for the people,"
\nhe said.<\/p>\n
Minister of Energy and Mineral Resources Purnomo Yusgiantoro
\nsaid there were five options now being considered by the
\ngovernment: First, raising prices only for industrial diesel oil,
\nbunker oil and Premium gasoline; second, raising prices only for
\nbunker oil and industrial diesel oil; third, raising prices only
\nfor Premium gasoline; fourth, raising prices for oil automotive
\ndiesel oil for transportation sector; fifth, raising prices only
\nfor automotive diesel oil and kerosene.<\/p>\n
The government will carefully study the options, before making
\na decision, he said.<\/p>\n
Elsewhere, the Indonesian Consumer Foundation demanded that
\nthe government publicize the evaluation of last year's fuel price
\nhike before acting to raise them again.<\/p>\n
"This is not about us agreeing with (the planned fuel hike) or
\nnot, but if the government wants to hike prices, it must not
\nburden the poor too much," YLKI chairperson Indah Suksmaningsih
\nsaid.<\/p>\n
"And to keep matters transparent, the government must first
\nshare with the public the results of the last fuel hike, on
\nwhether it had burdened poor people or not."<\/p>\n
Furthermore, the government has to familiarize the public with
\nthe hike plan to avoid possible resistance and inform the public
\nto what extent the plan would affect their lives, Indah added.<\/p>\n
"I also urge the public to talk to the government on how the
\nhike affects them, because honestly, they are the ones who will
\ncarry more burden than the rich people or the decision makers
\nthemselves," she said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jp13fuel-1447899208",
"image": ""
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