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Friday, May 17, 2013

Another Effect Occurred On PRICE - Review and Scenario


Suppose that Price has always been and will be the main consideration in business, commodities in specific substance. As in Indonesia, increasing price of fuel will be a definite agenda of government. Indeed the pros and contras will be stimulated as normal response. The perspective is varied on whom, how and what to expect on this policy. As for government, long term purpose is their main consideration of the policy decision.



Several scenarios have been predicted of following different percentage and calculation. Increasing price of fuel will be affecting on inflation rate, saving almost significant percentage of government budget. Analysts predict 20 billion rupiah will be saved on this occurrence which expected to be spent on other planned development in long term perspective.



However, despite the determined purpose by government further to taking a smaller picture of this, industry and individual consumption will be affected. Transportation cost of distribution will be increased, price will be increased, lead to decreasing consumption, normal scenario indeed lead by short term effect. Other scenario, long term effect, industry will arrange the budgeting as adjusted new cost while government will be ready for facilitate other development, lead to decreasing possible cost, long term cost.


Historical record and view, pointed industry that will be affected the most is automotive industry. Yet, commodity on the other hand will be fluctuated in current and future, within or after the increasing fuel price. As reviewed by Farm Press, for Soybean Oil as Universal Trading main product, the price is predicted to increase as the increasing of biodiesel use. With energy markets now competing with the food sector for vegetable oil, soybean prices and energy prices have statistically linked, creating a floor price for soy oil.

Take another point of consumption in Indonesia, the upcoming Ramadhan month and Eid could be considered as reverse effect. Average increasing consumption at 42%, the increasing fuel may be balanced  by the consumption rate. One month to go to the destined expectation.


The prediction would be derived from your historical calculation of your supplying rate. Therefore, your company and many other companies on the industry will definitely take part on this effect and create the graphic resulted on macro economy for third quarter.

Again, your consideration, our assistance.

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