Newspapers resist cost increases

SRAGEN, Central Java: The Newspaper Publishers Union (SPS) is still negotiating with the government and the Paper Producers Association (APKI) to set the price for newsprint which is to be raised on Oct.1.

SPS Chairman Sugeng Wijaya said the hike is unavoidable because of the soaring price of imported raw materials for paper.

"SPS doesn't object to the hike, but the increase must be effected gradually," he told reporters after addressing a workshop on newspaper management development on Friday.

The paper producers have proposed a 12 percent hike for newsprint, or Rp 127 (US$0.58), from the present Rp 1,060 per kilogram.

Minister of Information Harmoko, after opening the meeting, said the increase was not yet final. (har/rms)