Synthetic fiber makers protest power rate hikes<\/p>\n
JAKARTA (JP): The Indonesian Synthetic Fiber Makers
\nAssociation (APSyFI) has warned that the increase in electricity
\nrates beginning this month would severely undermine the operation
\nof its members.<\/p>\n
The hike will undermine companies' financial situations, and
\nwith the official minimum wage increasing at the same time, it
\nwill cause higher operational costs, the association's secretary-
\ngeneral Sutrisno R said in a statement on Saturday.<\/p>\n
\"The effect of these costs could result in declining
\nproduction activities and exports and it could cause the company
\nto lay off workers,\" Sutrisno said.<\/p>\n
With the new rate, the association will not be able to meet
\nthe $7 billion-$8 billion export target set this year by the
\nMinistry of Industry and Trade, he said.<\/p>\n
The association is the latest industrial organization to warn
\nof dire consequences to the economy as a result of the increase
\nin electricity rates.<\/p>\n
The 55 to 76 percent increase in the rates for middle and
\nlarge industries translate into an actual increase of between 80
\nand 101 percent once the electricity bills are calculated,
\naccording to various industrial associations.<\/p>\n
The Federation of Steel-related Producers (Gapbesi) warned on
\nThursday that unless the government lowered the planed increase,
\nthat many of its members would collapse.<\/p>\n
The Indonesian Textile Association (API) called for a review
\nof the increase that it said could undermine the industry.<\/p>\n
\"If they have to be increased, then it should be gradual,\" API
\ndeputy chairman Benny Soetrisno was quoted by Kompas Cyber Media
\nas saying on Saturday.<\/p>\n
The Association of Billet and Concrete Bar Producers (Abbesi)
\nsaid PT PLN, the state electricity company, had not been
\ntransparent with the rate hikes.<\/p>\n
\"PLN only made public the average 29.43 percent increase,
\nwhile the hikes for industrial consumers were hidden,\" Abbesi
\nchairman Zainal Musa said. The association is one of the members
\nof Gapbesi.<\/p>\n
Responding to the protests, PLN said it could do nothing to
\nchange the government's decision.<\/p>\n
PLN spokesman Maryono told Kompas Cyber Media that the company
\nwas only following decrees signed by President Abdurrahman Wahid
\nand Minister of Mines and Energy Susilo Bambang Yudhoyono.<\/p>\n
\"If industrial associations asks why the increases were so
\nhigh, they are asking why the decrees were made. We are only
\nfollowing those decrees,\" Maryono said.<\/p>\n
The government said the increase was necessary to reduce the
\nRp 13.7 trillion ($1.83 billion) losses faced by PLN this fiscal
\nyear. Even after the increase, PLN is estimated to lose about Rp
\n3.9 trillion ($520 million). (10)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/synthetic-fiber-makers-protest-power-rate-hikes-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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