"Those who agree must not later reverse their stance when protests occur."
Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono has criticized politicization of the issue of fuel price hike compensation for the poor.

"They are suspicious it would only benefit a certain political party," he said when opening the 9th national meeting of the Association of Indonesian Businessmen (Apindo) here on Monday.

In view of that Yudhoyono jokingly proposed raising the flags of all political parties when compensation would be made following a decision to increase the price of subsidized oils to avoid the suspicion.

With regard to fuel price hike he said consistent support from all parties would be needed when the option were to be taken.

"Those who agree must not later reverse their stance when protests occur," he said.

President Yudhoyono said the government is still seeking the right option with regard to reducing the fuel subsidy.

According to an economic observer from Jakarta-based Atma Jaya Catholic University, Prasentyantoko, raising the fuel price is better than restricting consumption.

"It seems the government will likely choose the option of massive consumption restriction. But to me the most effective one is raising the fuel price," he said.

He explained adequate infrastructure would be needed if limiting fuel consumption was to be chosen including for its supervision and control.

"I am afraid the infrastructure is not ready when the decision is taken," he said.

Presentantoko said both choices would raise inflation but control would be more significant if the government chose to raise the price. ***3***

reporting by anita permata dewi


(T.SYS/B/H-YH/B/H-YH) 08-04-2013 17:02:49

Editor: Priyambodo RH
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