Fuel Price Cut Brings Fresh Air For IKM

Jakarta, InfoPublik - Economic Observer Didik J. Rachbini assessed that the fuel price cut brings fresh air for Small and Medium Industries (IKM) in developing their businesses.

 

Didik also said that reduction by Rp500 per liter for premium and diesel fuel is still too small compared to the world oil price reduction from US$ 100 per barrel to US$ 30 per barrel.

 

“The fuel price reduction is not as significant as the decline of world oil price. But the price cut is necessary for industrial policy making to give  new impulse to export-orientated IKM from the cheap fuel price. So, it could be more efficient," said Didik in Jakarta, Saturday (4/2).

 

According to Didik, if the price reduction was intended for the industries, it is better for the Industry Ministry and Energy and Mineral Resources Ministry not to consider other aspects to authorize further price reduction.

 

If the industry is running, the economy will grow and people's income will increase by 50 percent within 2-3 years. "So this is a momentum that should be used by Industry Minister and Energy and Mineral Resources Minister to authorize further price reduction. On the contrary, for the Finance Ministry the cheap oil fuel price will cause reduction to state income," he said. (Translator : Erik Limantara)