"The government`s decision could create public uncertainty because people really want to know whether or not the fuel prices will be increased," Fadhil told ANTARA News here on Monday.
According to Fadhil, if the government decides to raise fuel prices, then all industries in Indonesia will feel the impact.
"Especially industries such as transport and electricity, which use fuel oil as primary material," said Fadhil.
Even the fishing industry will be affected as fuel is required by fishing boats, Fadhil added.
Fadhil also noted that the fuel price would be determined based on the availability of supplies in the market.
"The price will only be increased if the fuel supply is low. The scheme will create too much speculation if the government suddenly raises the fuel price," said Fadhil.
Regarding the national fuel subsidy budget, Fadhil said it should be used to fund further development of national infrastructure, rather than the government`s direct cash assistance programs for the public.
"These funds should be allocated to finance the construction of national infrastructure, since the benefits would be far greater than providing direct cash assistance to the people. This way, everyone will benefit," said Fadhil.
Fadhil also urged the government not to increase the basic electricity tariff at the same time as the fuel price, as it would be difficult for the public to accept.
(Uu.A050/INE/KR-BSR/S012)
Editor: Priyambodo RH
Copyright © ANTARA 2012
