Fuel Price Increase, Small Impact on Inflation

Jakarta (Antara Bali) - An increase in the price of subsidized fuel for four-wheel private vehicles will have only a small impact on inflation, President Director of state-owned bank BRI Sofyan Basyir said.

"The price of subsidized fuels for private cars will be increased but fuels for companies will remain unchanged so that its impact on inflation will be small. The purchasing power of middle-class people will be reduced," he said here on Friday.

He said that so far, those who enjoyed subsidized fuels are upper middle-class consumers. With the price increase for private cars, people of that class will spend more for fuels.

In the meantime, the people in the lower middle-class will not feel the impact of the increase in line with their lower fuel consumption.

"There will be no significant impact on inflation. The impact will be significant if the price is raised for all classes of consumers," he said. (*/DWA)