The Government Optimistic Economic Growth Is Maintained Even Though Fuel Prices Increase

Deputy Minister of Finance Suahasil Nazara (Photo: Doc. Ministry of Finance)

JAKARTA - The government through the Ministry of Finance (Kemenkeu) emphasized that the steps to adjust subsidized fuel prices (BBM) last weekend will not put excessive pressure on the national economy.

However, Deputy Minister of Finance (Wamenkeu) Suahasil Nazara did not deny that there will be an effect caused by this strategic policy.

"In response, the government provides support through various additional social assistance (bansos) so as not to burden the community. In addition, we are also optimistic that Indonesia's economic growth will be maintained," he said in an official statement on Monday, September 5.

According to Suahasil, the social assistance will reach 20.65 million families throughout the archipelago.

He hopes that this strategy can maintain the purchasing power of the poor and vulnerable so that they can still consume.

If the price of fuel goes up without any cushioning, poverty will definitely increase. Therefore, the government decided to return to distributing social assistance," he said.

Suahasil added that the increase in fuel prices would encourage months of inflation in September and October.

Even so, he considered, the downward trend will occur in the November period with projections back to normal levels.

So usually inflation like this rises quickly in the first month to the second month, then in the third month it starts to normalize. So we will continue to pay attention to how it is until the end of the year. Keep in mind that the increase in prices actually provides incentives to manufacturers to see that we can do a stronger production process," he said.

Deputy Sri Mulyani also believes that Indonesia can achieve Indonesia's economic growth of 5.1 percent to 5.4 percent throughout 2022.

"We imagine that until the end of the year our growth will remain in that range. So, we will continue to see economic activities in regions and in various places that continue to stretch in all sectors, we will continue to pay attention to this," concluded Deputy Minister of Finance Suahasil Nazara.