Fuel price hike may force textile firms to cut workforce<\/p>\n
Agence France Presse, Jakarta<\/p>\n
Indonesian textile firms have started, or are planning, to reduce
\ntheir workforces by an average of up to 30 percent due to rising
\ncosts as a result of higher fuel prices, an executive at the
\nIndonesian Textile Association (API), Lili Asdjudiredja said on
\nThursday. \"With fuel prices up, companies are trying to improve
\ntheir efficiency, but many have been forced to lay off their
\nworkers,\" said Asdjudiredja, who chairs the API chapter in West
\nJava. He said the textile industry employs around 2 million
\nworkers nationwide.<\/p>\n
He said in Bandung, the capital city of West Java province,
\nthat a number of textile companies have already shut down but he
\ngave no further details.<\/p>\n
On Saturday, the government raised fuel prices by an average
\nof 126 percent to cut fuel subsidies and keep the fiscal deficit
\nwithin target. Asdjudiredja said higher fuel prices will drive up
\nthe costs of buying spare parts, raw materials and for
\ntransportation, among other things.<\/p>\n
He estimated that the textile industry will face cost
\nincreases of 15 to 20 percent.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/fuel-price-hike-may-force-textile-firms-to-cut-workforce-1447893297",
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"sponsor": "Okusi Associates",
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