The Governor of BI Affirms Support BBM Price Adjustment Plan

Governor of BI Agus Martowardojo

Governor of Bank Indonesia (BI) Agus Martowardojo straighten out the news about his statement concerning the request of the President Joko Widodo (Jokowi) that the Minister of Energy and Mineral Resources and Pertamina review the price of fuel oil (BBM), which according to Agus much misinterpreted by some media as if he did not support the government’s plan.

“That is not true. In principle, I support the Government discourse to adjust fuel prices, all while considering consistency with previous policies,” Agus said as quoted from the website of Bank Indonesia, Wednesday (7/10).

Agus explained, the coordination between the central bank and the government, particularly the fiscal authorities, in a few months is going well. “The synergy of this fiscal monetary policy is needed in order to maintain stability and restore national economic conditions,” Agus said, adding that, the steps that have been taken also gained appreciation from both domestic and global.

To stimulate the economy grow better, and encourage structural reform, according to Agus, would need to be cooperation between the Government, BI, and other related parties. “BI appreciate the steps taken by the Government in implementing structural reforms, as reflected in the adjustment of fuel subsidies in November 2014, the acceleration of infrastructure development and interest subsidies for MSMEs (Micro, Small and Medium Enterprises),” he said.

Agus asserted, to maintain the momentum of growth, structural reforms need to be continued, even though the policy that should be taken tends to be unpopular.

Governor of BI also considers that the fuel (BBM) price adjustment plan by the Government is still a discourse. However, if the step was taken, Agus said, that the policy is carried out in order to strengthen state finances.

“The important thing is to ensure the credibility, which was built through the base of  technical calculations that thorough, transparent, and consistent,” Agus said.

In this regard, Bank Indonesia to support government measures to adjust fuel prices by calculating a credible and consistent. (Depkom BI/ES)