"Don`t say it is canceled. It is just put on hold. Basically, the government is working hard to find the best possible solution and will not give it up. We all think of how to do the best. Don`t ask me about the proper time," Coordinating Minister for Economic Affairs Hatta Rajasa said at the vice presidential office here on Tuesday.
The government postponed the plan to limit the use of subsidized fuels because it had to wait for proper time to carry out the plan, he said.
According to him, the government was still considering a fluctuation in energy and food prices in the global market as well as the public`s preparedness to accept the policy particularly with regard to inflation.
"Don`t interpret the preparedness in physical terms only. We also have to assess the public`s preparedness to accept the policy particularly when it comes to inflation and the purchasing power of our community. Several assumptions which have been set (in the state budget) have all changed because of sudden inflation induced by volatile food prices in the global market," he said.
The government did not want the policy to create a new problem which would later have a detrimental effect on the national economy, he said.
"We must profoundly consider whatever policy we will take particularly with regard to the national economy. We don`t want to see any distortion which will later have a detrimental effect," he said.
The government has planned to limit the use of subsidized fuels to slash soaring fuel subsidy as a result of growing consumption.
Finance Minister Agus Martowardojo has predicted the budget deficit would not exceed 2 percent of the gross domestic product this year.(*)
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Editor: Jafar M Sidik
Copyright © ANTARA 2011
