World Bank: Investors Await Fuel Price Hike

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  • Sebuah stasiun pengisian bahan bakar umum kehabisan BBM di kawasan Legok, Tangerang, Banten, (26/4). Menjelang kenaikan harga bbm membuat sejumlah SPBU mengalami kehabisan stcok bbm dan mengalami keterlambatan pengiriman. TEMPO/Marifka Wahyu Hidayat

    Sebuah stasiun pengisian bahan bakar umum kehabisan BBM di kawasan Legok, Tangerang, Banten, (26/4). Menjelang kenaikan harga bbm membuat sejumlah SPBU mengalami kehabisan stcok bbm dan mengalami keterlambatan pengiriman. TEMPO/Marifka Wahyu Hidayat

    TEMPO.CO, Jakarta - World Bank's lead economist for Indonesia, Ndjame Diop, said that foreign investors are waiting for the government's plan to increase fuel prices.

    "They are waiting for the new government's policy [related to fuel prices]," Diop said on Monday, October 6, 2014, in a press conference in Jakarta.

    According to Diop, foreign investors are hoping that the government will soon increase the fuel prices so that the subsidy can be allocated to develop infrastructures. The fuel price hike, Diop said, will cause inflation rate to hike.

    "But it will ease within 12 months ahead," he added.

    Diop considered that the number of fund allocated for government spending on infrastructure development, which is 4.5 percent of the total 2015 State Budget is extremely low. He compared the number to the Chinese government that has allocated 10.5 percent of its state budget for infrastructure development.

    JAYADI SUPRIADIN