TEMPO.CO, Jakarta - The Financial Service Authority (OJK) hoped the government would soon finalize the policy related to the subsidized fuel since the financial market condition would affect the inflation expectation.
“The fuel price increase must be soon realized so that the financial market will return to normal,” OJK’s Banking Research and Regulation Department Head Gandjar Mustika said on Friday, August 29, 2014.
According to Gandjar, the fuel price should be increased this year to make the calculation easier.
“Inflation rate that affects the finance sector, as well as the interest rate, will be easier to calculate,” Gandjar said.
Gandjar considered that increasing fuel price would reduce the fiscal deficit in finance sector that could be allocated to more productive sector.
In addition, Gajdar said, credit could be more widely-distributed and capital would become stronger. The finance could also be more easily calculated and planned.
“Clearly, the inflation rate can be controlled easily, as well as interest rate,” Gandjar said.