REPUBLIKA.CO.ID, JAKARTA -- Economic observers from the Institute for Development of Economics and Finance (INDEF), Enny Sri Hartati, assessed that cancellation of fuel price hike showed the poor credibility of the government. It could impact the business world.

“If this is the credibility of the government in making policy, it can affect the economy,” said Enny to ROL on Friday, May 15.

Furthermore, she explained, the cancellation provisions of the new fuel prices were already affecting credibility. Then, the credibility will affect society’s perceptions too.

"Of course this perception will arise from investor or business person and efforts of government credibility. They will definitely take into account that it will have a direct impact to the business they do, "said Enny.

Therefore, Enny considered if the perception of investors or other businessman was already disrupted, so the business world would also be disrupted. She continued, if it happened, the impact would be touched to the Indonesian economy.

"In the making of economic policy, the government should be also take into account the impact of the relevant stakeholders, so do not bring negative sentiment and the impact to the business world," said Enny.

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