Because of Nazar, Price of fuel Increases is cancelled?

The government does not seem interested in the proposal the IMF (International Monetary Fund) and HIPMI (Indonesian Young Entrepreneurs Association) in order to raise the price of fuel oil (BBM) type of subsidized premium and diesel this year.

This statement was made Economic Observer, Ryan Kiryanto, Saturday (23/07/2011). "I have faith the Government will not raise fuel prices," said Ryan.

According to Ryan, there are a number of considerations are not the government hiked subsidized fuel prices. Among the ruling political party in government that Democrats are now in the public spotlight over alleged cases of Former Treasurer M Nazaruddin. "The risk of political big plus if the fuel price increase," he said.

Described rule-based Democratic Party is currently under pressure with a hectic political gossip about Nazaruddin. In the midst of the public spotlight because Nazaruddin, the Democratic Party-led government would not increase the risk by raising fuel prices. "Well maybe, because of political pressures that risk because Nazaruddin," joked Ryan.

In addition, Ryan also said that if fuel prices rise then the most telling impact of the poor are subsidized fuel users. "Especially the fishermen," he said

If fuel prices rise, according to Ryan also will have an effect on the increase in the rate of inflation. "If fuel prices and electricity tariffs do not rise, inflation rate could be 5 percent this year," he said.

Is said to signal the government does not raise the price of fuel can also be seen from the government's efforts to raise the subsidy budget in the state budget amounting to Rp 150 trillion for electricity and fuel subsidies. "Of course this adds to the budget deficit," said Ryan.

However, Ryan insisted the government will not remain silent and will take a patch policy deficit was 2.1 percent (Rp 500 trillion). "The policy, the government will enforce the possibility of tax or taxes for SMEs. Magnitude from 2.5 to 5 percent," Ryan said.

He confirmed if this policy will get resistance from the SMEs (Small and Medium Enterprises). "With a small SME income but are taxed then the consequences SMEs will raise product prices. This will make the inflation rate will not be added under control," he said.