Jakarta (Antara Bali) - Economist from Mandiri Securities said the government ascertain whether or not it would go ahead with its plan to raise subsidized fuel price hike to support Bank Indonesia's step to raise its benchmark rate.
"One of the government's forms of support to Bank Indonesia (BI) is to assure whether or not it go ahead with its plant to raise fuel oil prices," Destry Damayanti said here on Monday.
She said the national economic burden could increase if the government cenceled its plan to hike the price of subsidized-fuel prices. It will also disturb the country's trade balance stability.
According to her, the BI's role is limited to macro-economic sector instruments -- interest rate, currency depreciation and foreign exchange reserves. Meanwhile, the government has the right in micro-economy to hike subsidized-fuel prize.
She said BI is already on its track to reduce the inflation by hiking BI rate by 25 basis points to 6 percent from 5.75. (*/DWA)
