Delay in Fuel Price Rise, Economy Gets Better
“Business prospects, as well as consumers, get better due to the delay.”
(VIVAnews/ Muhamad Solihin)
VIVAnews – Despite a number of negative issues, the delay in subsidized fuel price in April has helped the Indonesian economy to improve as shown in the buildup in Business Tendency Index (ITB) and Consumer Tendency Index (ITK) .
“Business prospects, as well as consumers, get better due to the delay,” said Head of the Central Bureau of Statistics, Suryamin, in Jakarta on Monday.
Meanwhile, from the fiscal side, the delay in fuel price rise has increased the subsidy budget by one-fifth of the government’s spending budget. The budgeted subsidy of Rp225 trillion may go up to Rp340 trillion if neither price increase nor consumption control is set up.
Suryamin said the Business Tendency Index (ITB) in the second quarter will reach 107.86 from the first quarter’s 103.89. The increase is estimated to affect all sectors and businesses. “The highest increment occurs in transportation, while communication hits 111.11. The lowest is recorded by the processing industry by 104.42,” he said.
For the Consumer Tendency Index (ITK), he said, consumer’s confidence for spending in the second quarter is 108.34, an increase from the first quarter’s 106.54 following the increase in household income and low inflation on food consumption.
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