Fuel Price Hike Likely to Push Retail Prices
16 May 2013 20:22 WIB
TEMPO.CO, Jakarta - The Indonesian Retail Association (Aprindo) estimated that retail products prices will increase following the fuel price hike.
Aprindo Deputy Secretary General Satria Hamid Ahmadi, told Tempo on Thursday that the fuel price increase would push retail prices by 10 to 15 percent.
The price increase, he said, is likely to erode the people's purchasing power. Last year, the national retail industry grew by 12.5 percent to Rp135 trillion. As for this year, Satria said, "we are quite pessimistic to even reach a seven-percent growth. Five percent would be good enough," he said.
To optimize the growth of the retail industry, Satria is asking the government to provide more help, such through tux cuts and easier licensing processes.
PINGIT ARIA
