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||27 September 2009
Indonesia to raise toll tariffs by up to 18.5 pct
Toll road tariffs in Southeast Asia's biggest economy would rise between 12.74-18.56 percent effective from Monday, reported Reuters, quoting Indonesia's state toll road agency (BPJT).
BPJT Chairman Nurdin Manurung said on Friday the higher tariffs, which are in line with an earlier announcement, would be applied to 14 toll roads. Analysts have warned the toll hikes combined with expected increases of liquefied petroleum gas (LPG) prices, electricity tariffs, and higher commodity prices next year, would increase inflationary pressure in coming months.
Faced with growing inflationary pressures, analysts expect Bank Indonesia, to hold its key rate, the BI rate BIPG, steady for the remainder of this year.
"Starting October, the increase in tariffs would start to have an impact," said Aldian Taloputra, an economist at Mandiri Sekuritas.
"Next year commodity prices will be higher, and the government also plans to increase administered prices...We expect Bank Indonesia to stand pat (on rates) this year, and to increase the BI rate by 25 basis points next year," he added.
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