"The poverty rate can reach 12.8 percent if fuel oil prices are raised and the inflation rate can also increase," the minister told the Finance Commission XI of the House of Representatives (DPR) here on Monday.
He said that the figure exceeded the government target, set at between 10.5 and 11.5 percent in 2012.
The minister said in order to anticipate the increase in the poverty rate, the government was preparing a form of compensation for the people who were directly impacted with the fuel oil price hikes.
The compensation will be among others in the form of temporary direct cash assistance (BLMS) amounting Rp150,000 per target family.
He said that the government would also provide subsidy for public transportation amounting to Rp5 trillion.
"With the programs being prepared by the government it is expected that the poverty rate would be lowered," Minister Agus said.
He said that with the revision of the 2012 economic growth target to become 6.5 percent, the prediction of unemployment rate could also be affected.
"The unemployment rate is also expected to be affected but it would not be too significant so that the target set at between 6.4 and 6.6 percent could met," he said. (*)
Editor: Kunto Wibisono
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