No Fuel Up, Inflation Unattended 5 Percent

The government has tried to curb inflation in 2012 as the cancellation of plans to raise the price of fuel oil (BBM) subsidy in April 2012. In the Budget 2012 changes, the inflation rate reached 6.8 percent pegged.

"Fuel is up. So inflation should be in the range of 5 percent," said Coordinating Minister Hatta Rajasa told reporters in the courtyard the State Palace, Jakarta, Thursday (19/04/2012).

In addition, continued Hatta, the government will also seek to economy grew by 6.5 percent in 2012. The government is also trying to keep budget deficits below the 3 per cent.

Looking ahead, continued Hatta, the government will restructure the state budget posture. There are a number of posts that will change. At present, the discussion at the cabinet level is still underway.

Related to inflation, such as news Compass, Head of the Department of Economic Research and Monetary Policy Bank Indonesia, Perry Warjiyo, states, limiting the impact of subsidized fuel consumption based on engine capacity is planned to begin in July 2012 a small effect on inflation.

"If the government took limiting consumption of subsidized fuel for private cars in the Java-Bali for certain cc engine capacity up we expect the impact of inflation is not too big," said Perry in a discussion with reporters, the Office of Bank Indonesia, Jakarta, Tuesday (17 / 4/2012).

Perry explained, when the government imposed restrictions on subsidized fuel for private cars around there will be a surcharge of 0.7 percent against the rate of inflation. Meanwhile, if the government simply impose restrictions for private cars with engine capacity of the particular impact on inflation is much lower.

"We estimate the additional impact of inflation of 0.3 percent," added Perry.

With restrictions on subsidized fuel, he said, inflation could reach about 4.7 percent by the end of the year. "If that is done only restrictions for private cars is 6.4 percent economic growth can still be achieved with a 4.4 percent inflation plus 0.3 per cent," said Perry BI-related predictions until the end of 2012.

The government will make use of subsidized fuel restrictions are scheduled for July 2012. This plan will be conducted in the Greater Jakarta area.

Ministry of Energy and Mineral Resources Oil and Gas Director General Evita Legowo in Jakarta, Monday (4/16/2012), said the restrictions had been started in May 2012. But it is a vehicle specifically for government agencies both national and local, state and local enterprises in the Java-Bali region.

"After that, there are 60 days prior to the enforcement to the community in the Greater Jakarta area and then gradually in the Java-Bali according to the availability of its Pertamax," Evita said.