BI Asks Government to Consider Plans to Hike Fuel Prices

Surabaya, E Java (Antara) -- Bank Indonesia (BI) has cautioned the new government to reconsider any plans to hike the price of subsidized fuel oils. The bank believes that this price hike following the inauguration of President Joko Widodo and Vice President Jusuf Kalla could trigger market volatility. "We fear that raising the prices of subsidized fuel oils, following the presidential inauguration, can trigger a domino effect and heavily trouble the people," the Head of the Bank Indonesia Representative Office for Surabaya Area IV, Dwi Pranoto, said here on Tuesday. Pranoto further stated that since the election of Joko Widodo as the new leader of the country, many people had speculated on the impact his new policies could have on the national economy. "Especially in East Java, we hope that the economy remains stable and is unaffected by market volatility," he noted. Moreover, the bank official also asked people to be patient and wait for the government to officially declare their plans. He believes that these reports on fuel price hike that are circulating could be nothing more than a rumor. "We are optimistic that the new government will issue pro-people policies to govern the nation," he remarked. Earlier, the Chief of the Consumer and Wholesale Price Statistics of the Central Statistics Agency (BPS) Office in East Java, Candra Birawa, pointed out that fuel prices, which belong to the group of administered prices, were among those commodities that contribute to inflation in a province. "Other elements of this group that also contribute to inflation are electricity tariffs and drinking water bills," he explained. (*)