(MENAFN) Indonesian finance minister, Muhamad Chatib Basri, announced that if local fuel prices rise, then the country's 2013 inflation level might grow to 7 percent, reported Reuters.
Earlier this month, the Indonesian president stated that the government may raise fuel prices if only the parliament endorsed a financing program to protect the poor from the inflationary impact of high fuel prices.
Newly appointed Basri faces the challenge of tackling huge fuel price subsidies, which are consuming the budget and restraining funds for infrastructure, education and healthcare.
It is worth noting that Southeast Asia's largest economy posted an annual inflation rate of 4.3 percent last year.
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