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Severe Blizzard Kills Seven in New York Snow ploughs have been deployed to help re-open road access
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Endangered Elephant Found Killed in Aceh Jaya Locals found the carcass of the protected mammal while
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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