Greenback Uptrend May Lead to Fuel Price Hike: Indef
13 March 2015 13:26 WIB
TEMPO.CO, Jakarta - Eny Sri Hartati, executive director of the Institute for Development Economics and Finance (Indef), said the ongoing rupiah correction against the US dollar will an indirect impact to the public. A high dollar rate, she said, could raise subsidized fuel prices above market prices.
"Because Pertamina's cash flow will become unhealthy," Enny told Tempo Thursday.
Enny said a weak rupiah will increase Pertamina's operating expenses. Now that the government no longer subsidizes Premium gasoline, they have no reason to maintain prices. On the other hand, Pertamina has the freedom to raise prices.
Pertamina's debt total of US$34.1 billion per June 2014, will multiply exponentially when matched to the current exchange rate. Thus, Enny said, it would be natural for the state company to raise gasoline prices to cover operating deficits.
Enny criticizes the government's relaxed poise over the correction. Indeed, the greenback is gaining on external factors, but it doesn' mean the government should tolerate and do nothing about it.
On Thursday's trade, the rupiah closed at Rp13,182.5 per US dollar.
ANDI RUSLI
