Analyst: LPG Price Hike to Increase Inflation by 0.5 Percent
13 August 2014 21:14 WIB
TEMPO.CO, Jakarta – The government's plans to increase 12-kilogram LPG canisters will cause the inflation rate to hike by 0.5 percent, Telisa Aulia Falianty, an economic analyst at the University of Indonesia, told Tempo on Tuesday, August 12, 2014.
“Fuel [prices] will significantly affect the inflation rate,” Telisa said.
Telisa, however, said the government must anticipate consumers' possible shifting to subsidized LPG despite the increase in the inflation rate, which was considerably insignificant.
Earlier, Chairul Tanjung, the Coordinating Minister for the Economy, admitted he had received a proposal to increase the prices of 12-kilogram LPG canisters from state-run oil and gas company PT Pertamina.
“Yes, I have received it [the proposal], but the decision is in the president’s hand,” Chairul said at his office on August 7, 2014.
Chairul, who is famously known as CT, said increasing the 12-kilogram LPG canisters was part of the government’s authority. He added Pertamina should propose it to the president before for approval.
“The timing [to increase the LPG price] is not right yet. I have to consult the president about this,” Chairul said.
AYU PRIMA SANDI
