The meeting was attended by Coordinating Minister for Economic Affairs Hatta Rajasa, Coordinating Minister for Political, Security and Law affairs Djoko Suyanto, Central Bank Governor Darmin Nasution, Transportation Minister EE Mangindaan, Deputy Agriculture Minister Rusman Heryawan, Deputy Minister of Energy and Mineral Resources Widjajono Partowidagdo and Head of the National Statistics Agency Suryamin.
As has been reported so far, inflation is expected to rise in line with the government`s plan to raise the price of subsidized gasoline from Rp 4,500 per liter to Rp 6,000 on April 1.
Due to the fuel price hike, inflation is expected to soar, and so the inflation target set in the national budget for 2012 will be changed from 5.3 percent to 6.3 percent in the revised 2012 budget that is currently being discussed by the House of Representatives.
Several observers, meanwhile, said the fuel hike could make inflation soar to more than seven percent.
The government has said the subsidized fuel price needed to be increased because the price of world crude has reached US$120 per barrel or has surpassed the projections of the 2012 budget, which was fixed at US$90 per barrel.
The increasing crude price has caused the fuel subsidy to swell, placing a burden on the budget.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2012
