Bali on alert for fuel high impact

Bali on alert for fuel high impact - thejakartapost.com. I Ketut Wija, economics assistant in the provincial administration, told journalists on Tuesday that the fuel hike would certainly affect transportation and production costs in every sector, from tourism to manufacturing and agriculture.

“We are now working with relevant agencies, including the province’s inflation control agency, to learn about conditions in the field,” he said. Wija admitted that the fuel price hike was a heavy blow to the people and to industry.



“I am hoping that the people will not experience difficult times and the fuel hike will not bring more psychological pressure to bear on the people, especially those from the low-income bracket,” Wija said.

The increased cost of fuel will influence production quantities and distribution costs, as well as many other production processes.

At present, Bali is in the midst of harvest season for various fresh produce. “We are also expecting harvests to be smoothly distributed,” added Wija.

If distribution runs properly and the weather is favorable, no crucial price fluctuations for fruits and vegetables are expected.

The team is also monitoring the flow of staple goods from Java to Bali and other eastern Indonesian provinces through Gilimanuk harbor in Jembrana regency and Padang Bai harbor in Karangasem regency.

Dwi Pranoto, head of Bank Indonesia for Bali and Nusa Tenggara, explained that the direct impact of the June fuel policy would be visible on inflation rates from early July.

The impact will occur in early August with increased transportation fees. “The impact of the fuel price policy will last for quite a long time, between three to six months after its issuance,” Pranoto said.

He was pessimistic that Bali would be able to hold inflation to 5.5 percent for 2013, saying the bank was forecasting the island’s inflation would reach 7.86 percent.

To slow inflation, the government had to continue to develop infrastructure connecting the industrial regions with other parts of the country.  “When distribution of goods is properly done, distribution costs can be reduced accordingly. Incentives must also be promoted for the transportation sector,” Pranoto said.

Amiruddin, an official at the Bali branch of the Central Statistics Agency, said that Bali’s inflation rate in June was stable, while in April and May there had been deflation of 0.47 percent.

Bali on alert for fuel high impact : sources : http://www.thejakartapost.com/bali-daily/2013-07-04/bali-alert-fuel-hike-impact.html