Sat, 01 Apr 2000

Billet makers face closure

JAKARTA (JP): The Association of Steel Billets and Concrete Bars Producers (ABBESI) said on Friday most of its 27 members would close down their operations if state electricity company PLN continued with its plan to increase it rates on April 1.

"The government should review the planned rate increase. Otherwise most of our members will be closed down," the association said in a statement.

The government plans to increase electricity rates by an average of 29 percent beginning April. However, rates for industrial plants such as the association's members will increase by between 50 percent and 76 percent.

The association said the new electricity rates for its members, which paid electricity bills worth over Rp 603.3 billion last year, were too high.(07)