Producers and Traders Trying to Cope with Fuel Price Increase

The government finally announced the price hike for subsidized fuels on Saturday (3/9) after the planned hike drew pros and cons from the public in the last few weeks.

KOMPAS/RADITYA HELABUMI

Shinta W Kamdani, the vice chairwoman of the Indonesian Chamber of Commerce and Industry.

JAKARTA, KOMPAS — In line with the increase in the prices of subsidized fuel, producers and traders have also begun to increase the prices of their goods and services. As a result, business growth will be hampered due to a decline in consumer buying power. The vice chairwoman Shinta W. Kamdani of the Indonesian Chamber of Commerce and Industry (Kadin) said on Sunday (4/9/2022) that almost all producers and traders would be affected by the decline in consumer buying power.

The subsidized fuel hike, which was immediately followed by the increase in the prices of food and other basic needs, would slow public consumption, which would ultimately suppress demand and supply. “Although the government has tried to reduce the [fuel hike’s] negative impacts with various kinds of subsidies to the community," she added.