The government has so far not intend to raise the price of fuel oil (BBM), although the budget for energy subsidies, both fuel and electricity, already soaring above Rp 200 trillion

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The government has so far not intend to raise the price of fuel oil (BBM), although the budget for energy subsidies, both fuel and electricity, already soaring above Rp 200 trillion




The government has so far not intend to raise the price of fuel oil (BBM), although the budget for energy subsidies, both fuel and electricity, already soaring above Rp 200 trillion. Danareksa Research Institute chief economist Purbaya Yudhi Sadewa believes there are several reasons that make the government hesitated to raise fuel prices.

"In addition to political issues, the government hesitated to raise fuel prices as the index of public trust in government remains low. If raised, it will be dangerous," said the show Danareksa Purbaya Outlook 2013: Its Time For Indonesia at the Ritz-Carlton Pacific Place Jakarta, Thursday (10 / 1/2013).

According Purbaya, the actual index of confidence in the current government are getting better, but still at a low level. Based on his research, the number 90 is a safe value index of public trust in government. In November 2012, the confidence index is still 82-83.

"Actually pretty good, but it's still not safe enough to be able to increase fuel prices," he said.

In his notes, the consumer confidence index had been above 130 percent during the reign of Megawati. In the SBY-JK, the confidence index was at 112.1; 92.9, and 102. At that time, the government raised fuel prices three times, twice in 2005 and once in 2007.