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Jakarta (ANTARA News) - The 28.7-percent increase in fuel oil prices recently announced by the government is to affect investment growth in Indonesia in the sense that within the next six to nine months investors will delay realization of their investment plans, a businessman said.

"It will not be a slowing down but a postponement of the realization of investment commitments made before the fuel oil price hikes," said Sandiaga Uno, president director of Saratoga Capital, here Monday.

However, after the six to nine months, investors would return as Indonesia`s macro-economic structure would have become stronger by the reduction in the fuel oil subsidy, he said.

The government should then rerecord incoming investment to see whether investors` confidence had returned, Uno said.

It was through forums like the Indonesian Regional Investment Forum (IRIF) 2008 that investors could be expected to return in late 2008 or early 2009, according to Uno.

He said he felt sure if the government seriously and consistently corrected the lopsided condition of the state budget caused by the fuel oil subsidy, the market`s confidence would be restored.

"I hope we can then take stock again of sectors that should be supported to rise again at the end of 2008 or the beginning of 2009," Uno said.

According to Uno, the sectors that would be greatly affected by the fuel oil price hikes were food, infrastructure, distribution, transportation, fisheries and plantations. A reexamination must be conducted of what could help revive these sectors as it was obvious their production costs would rise substantially.

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