REPUBLIKA.CO.ID, JAKARTA - Government of Indonesia promises not to rise the fuel prices this year in order to maintain economic stability towards presidential election in 2014. Indonesian Vice President Boediono said rise the fuel prices had political impact.
"Government must listen to what people say before implementing policies and it's the consequences of democratic system," Boediono said on Thursday.
Government will still rise the fuel prices later. In the meantime, government can only implement systematic policy, such as converting oil fuel to gas, to decrease the burden of subsidy.
Boediono said Indonesia faced unstable macro economic condition. Indonesian tax income is still at the lowest level in Asia. The ratio of tax to Gross Domestic Product (GDP) is 12 percent.
Indonesia also faced deficit budget about 1.2 percent from GDP last year. The ratio is predicted to increase to 1.36 percent.
Despite the challenges, government believes economy in Indonesia will grow above six percent. He said that government would not implement surprising policy. Instead, they will issue gradual and systematic policy in the last 10 months before the election.
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