Newsprint price to increase by 9.48% next month
Newsprint price to increase by 9.48% next month
JAKARTA (JP): The government has allowed producers to raise
newsprint prices by 9.48 percent to Rp 1,270 (58.28 U.S. cents)
per kilogram next month due to increases in production costs,
Minister of Industry Tunky Ariwibowo said here yesterday.
In a hearing with Commission VI of the House of
Representatives (DPR), Tunky said the increase is inevitable as
production costs have risen by 15 percent following the recent
50-percent increase in the prices of materials for newsprint
production.
He explained to the commission, which deals with
manufacturing, mining and energy industries, that the price of
pulp has soared by 64 percent to US$180 per ton and used paper by
55 percent to $420 per ton.
The new prices of newsprint announced by the government
yesterday is exactly the same as the ones unilaterally introduced
early this month by the state-owned PT Kertas Leces and the
Indonesian-South Korean joint-venture PT Aspex Paper -- the only
local newsprint producer.
The unilateral decision by the two companies drew protest from
the Newspaper Publisher Association (SPS), the main user of the
paper.
The association claimed that the increase would cause losses
to them because they would find it hard to justify raising the
prices of their newspapers.
The two sides, the producers and the association, then held
negotiations under the supervision of the officials of the
Ministries of Industry, Trade and Information. However, the
negotiations ended up dead-locked as neither of them were willing
to soften their demands.
Commenting on the dead-lock, Tunky said the two parties had
been required to submit their demands and suggestions to the
related ministries, so that the government could take appropriate
action.
"Until now, I have not yet received their reports and
suggestions after the dead-locked negotiations," Tunky told
journalists during a break.
Tunky promised that as compensation, the government will lower
import duty on newsprint as long as it does not endanger domestic
producers.
Currently the government imposes a 20-percent duty and a five-
percent surcharge on newsprint imports. (rid)