Writing (HIGH COST ECONOMY IN INDONESIA) Economic price increase be quite scary for the developing countries, especially

Indonesia. Inflation will cause the fixed income community will increasingly, while Indonesia has an open economy where the system of globalization. The low competitiveness of Indonesia's products in international trade are more influenced by Internal factors can be attributed to the high cost economy. The development of oil prices continued soaring of late will take effect on the climate life invest.The main thing is the Government will also adjust the price of oil/PETROL in the country or not. If Yes, of course the condition of the economy can be very different. Usually, the fuel price hike will lead to soaring production costs, soaring costs and increase distribution and also inflation. Prices of goods have become more expensive, purchasing power declined, for a steady income. Its economy is stagnant and the level of well being distracted on the other hand, bad credit is getting back on the rise, the most severe was the narrowness of employment because the business world adjusts its production according to the price increase as well as decrease in demand for goods. If the price of fuel was raised, the image of the Government politically compromised, people will certainly not agree if prices become prohibitive, if the Government interrupted its effects become quite extensive, so if this refers to the possibility of fuel prices will not be raised. But the problem is not finished until here, although fuel prices are not raised, nonetheless the impact of rising world oil prices have an effect on Indonesia's economy including investment climate. the Government in controlling inflation (rising prices), is some way either through monetary policy, fiscal policy or fiscal policy and nonmoneter, all of which are aimed at stabilizing the economy in may Indonesia in General. the impact of inflation of the value of the currency down, due to an increase in the price of goods and there will be unemployment, as the Government tried to suppress prices.

REFERENCE http://www.antaranews.com/berita/371053/legislator-kenaikan-harga-bbm-dorong pertumbuhanekonomi