Producers of synthetic fiber to raise prices

Producers of synthetic fiber to raise prices

JAKARTA (JP): Local synthetic fiber producers plan to raise
the price of their products by between 5 percent and 13 percent
in order to meet rising costs from the planned increase in fuel
prices next month.

Risa Bhinekawati, secretary-general of the Association of
Indonesian Synthetic Fiber Producers (APSyFI) said the new price
would take effect immediately after the new fuel price is
implemented.

"In order to minimize the impact of the fuel price hike, the
price of synthetic fiber products will be increased by between 5
percent and 13 percent, or US$0.03 to $0.05 per kilogram," Risa
told Bisnis Indonesia.

Fuel expenditure in the synthetic fiber industry accounted for
70 percent of the total cost structure, she said.

The government decided in the middle of this month to increase
fuel prices for industrial consumers by between 50 percent and
100 percent on April 1.

Responding to public pressure over an increase in fuel costs,
the government postponed planned price increases for kerosene,
automotive diesel oil and gasoline sold at gas stations until
Oct. 1 to prevent the already fragile social and political
situations from worsening.

Yoichi Iida, marketing director for PT Teijin Indonesia Fiber
Corp. Tbk., said that the price increase would be a major burden
on the industry.

"We must also raise our prices if we don't want to lose," Iida
said.

As most of the synthetic fiber companies use their own
generators to power their plants, even a slight increase in the
fuel price would immediately affect their operating costs, Iida
added. (03)