GOVT TO TAKE INTO ACCOUNT REAL SECTOR IN CUTTING FUEL PRICES

Jakarta, Nov 6 (ANTARA) - The government will not take into account the state budget only but also its impact on the real sector when it lowers fuel oil prices, a government official said.

"We look at the present figure and its impact on the real sector if fuel oil prices are lowered. That's why, I think, the policy to cut fuel oil prices is still under process," Head of Fiscal Policy of the Ministry of Finance Anggito Abimanyu said here on Wednesday.

He said that even though the world crude price had significantly dropped to below US$70, the average Indonesian Crude Price (ICP) was till recorded at US$100.

"I think we should not take into account the state budget only but we have also to think of how to provide the most appropriate incentives for the real sector at the current crisis," Abimanyu said.

He said that what mattered was not how to increase or reduce subsidy but how to take a decision between to lower or not to cut prices.

"Calculations on state budget and the benefit for the real sector will be taken into account altogether," he added.***8***