Minister: Energy And Labor Issues Might Weaken 2013 Economy

Jakarta, Dec 17 (ANTARA) - Minister of National Development Planning Armida S. Alisjahbana has predicted that the country�s current issues with energy and labor could weaken its national economy in 2013. "If both these issues are not immediately and properly addressed, there will be a significantly bad impact on the national economy," the Minister said in a meeting with leaders of the mass media here on Monday. She argued that the energy-management issue, especially regarding energy subsidies, is related not only to the economy but also to social and political issues. According to the Minister, the government should change its existing method of managing subsidised fuel since the middle-class population in Indonesia has increased. "Most users of subsidised fuel come from middle-class society, and their numbers have recently increased substantially. As a result, the consumption of subsidised fuel has increased significantly," she pointed out. Sharing her opinion, Armida said the middle class should not receive subsidised fuel because they can afford to buy regular fuel. "So a proper distribution mechanism [must be introduced] in 2013 to direct the use of subsidised fuel solely to people with a low income. Besides this, the government should limit the supply of subsidised fuel and be more aware of fuel smuggling," she said. Regarding the labor issue, she noted three major problems: minimum-wage setting, outsourcing and the administration of social security. "The issue of employment has made a significant impact on industries, particularly labor-intensive industries, and in turn, this will affect our economic growth in the near future," she continued. Meanwhile, she added, there is growing optimism that the Euro zone economy will gradually improve compared to its state six months ago. "This is due to an agreement amongst European countries to improve the coordination of non-monetary policies�for instance, stricter banking supervision through the European Central Bank," Armida explained.