Govt Preparing Subsidy For Small, Medium Businesses

Jakarta, May 13 (Antara) - Minister of Cooperatives, Small and Medium Enterprises Sjarifuddin Hasan has said the government is preparing a subsidy scheme for small and medium businesses to weather the impact of fuel price hike on them. "So, small and medium businesses must not be worried as the government is preparing a subsidy scheme for them and people in need of it," he said here on Monday with regard to the government`s plan to raise the price of subsidized fuel oils to reduce budget deficit. The minister admitted the fuel price hike would increase inflation up to 7.0 to 7.5 percent a year. Right now the inflation rate is 5.0 to 5.75 percent and so if the price of subsidized fuel oils is finally raised there will likely be around 2.5 percent hike in inflation, he said. "What is clear is there has been commitment on the part of the government to give stimulation to the people and it is assured it will meet the target," he said adding the government has already discussed it with the House of Representatives. He said among the schemes discussed was income tax exemption for small and medium business people who have not had permanent business locations.