"Unless it is managed well the problem could disrupt macro-economic stability," he said at a working meeting with the House of Representatives (DPR) here on Monday.
In turn the problem would slow economic growth that has been achieved so far, he added.
The central bank governor said that cutting the fuel consumption and subsidy could reduce the government`s budget burden.
"It could reduce not only the burden of the government`s budget but also could significantly reduce pressure on the balance of payment," he said.
With regard to Bank Indonesia Darmin said that its policies would be directed to management of domestic demand so that it would be in line with efforts to maintain the external balance.
"Bank Indonesia would continue to strengthen combination of policies through five-pillar policies," he said.
The five-pillar policies cover interest, exchange rate, macro-prudential policies, communication and coordination.
(H-YH/a014)
Editor: Suryanto
Copyright © ANTARA 2013
