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Thursday, 27 November 2014 | 22:02
Anti-Corruption Activist Targeted in Bombing in Probolinggo Buchori Muslim is working as an observer to several on-going
corruption cases in Probolinggo.
Thursday, 27 November 2014 | 21:46
Minister Rudiantara to Lift Bans on Vimeo Minister of Telecommunications and Informatics Rudiantara and
Vimeo CEO have scheduled a video conference to discuss the
ban lifting.
Fuel Price Increase Affects Consumer Leasing
Tuesday, 30 April, 2013 | 13:01 WIB
Fuel Price Increase Affects Consumer Leasing

TEMPO.CO, Jakarta-Jahja Setiaatmadja, President Director of PT Bank Central Asia Tbk, stated that fuel (BBM) price increase will likely to affect costumer leasing. Jaja explained that if the government chooses to increase BBM price for private vehicles, demand on vehicles will decrease.

“If they increase the price of BBM for private cars, then demand for car leasing will decrease. But the demand for motorcycle leasing will probably rise,” he said in an Analyst Meeting in Kempinski Hotel, Monday, April 29. Jahja admitted that if the government reduces fuel subsidy, it will generally help the State Budget (APBN). “If the government does not spend so much in subsidizing BBM, the money can be allocated for another projects,” he said.

He also added that by doing so, the economy will improve in line with infrastructure developments, including constructing new roads, ports, and airports.

“Our economy will be strengthened if the government spends more on infrastructure,” Jahja stated. However, he is concerned that if the government decided to increase fuel price, it will lead to expensive public transportations, which can cause high inflation rate. High inflation rate will then affect Bank Indonesia (BI) rate, as well as commercial banks lending rate. 

“If the BI rate rises, deposit interest rate will also rises, and, like it or not, the bank lending rate will rise as well,” he concluded. LINDA TRIANITA