Publishers insist on lower book prices

Publishers insist on lower book prices

JAKARTA (JP): Soaring newsprint prices have forced publishers
to once again pressure the government to exempt books from
numerous taxes in order to make books affordable.

"The government should apply a 'no tax for knowledge' policy,"
Putut Widjanarko, General Manager of the Mizan publishing company
in Bandung, was quoted by Antara on Saturday as saying.

Commenting on the recent 15 to 20 percent increase in the
price of books, he pointed out that, unlike many countries where
textbooks are exempt from tax, the Indonesian government imposes
value added taxes on paper, on publishing equipment and on the
production and distribution of books.

Putut said that even before the price increase, books in
Indonesia were considered expensive compared to other developing
countries.

Tax exemption policies, he said, should be introduced and the
government must continue to encourage people to love books with
nationwide campaigns to promote reading.

This way, he said, more books could be published which would
lower their prices.

The government recently reduced the price of HVS paper, used
in school textbooks, from Rp 2,600 (US$1.2) to Rp 2,500 per
kilogram. Textbook prices, however, have risen 15 to 20 percent.

Putut said that the government's small reduction in the cost
of HVS paper for school textbooks wouldn't curb the sharp
increase in the price of textbooks.

"With this policy, the government still will not be able to
guarantee that it is profitable for publishers to print school
textbooks on HVS paper," he said.

The government announced a 60 percent increase in the price of
HVS paper and newsprint last month, triggering a strong reaction
from publishers and also the public.

Earlier this week, after the reduction of HVS prices, the
House of Representatives urged the government to reduce the price
of newsprint.

Putut praised the House's move, pointing out that most
textbooks are printed on newsprint.

In line with this, Boedi Yogipranata, head of the Gramedia
bookstore in Yogyakarta, said 75 percent of school textbooks were
printed on newsprint.

Boedi said that since the April price hike, his bookstore has
increased the price of textbooks by up to 10 percent and fiction
and non-fiction books by 15 percent.

Meanwhile, it was reported from various cities that fewer
books have been bought over the past month, possibly because of
the increase in prices.

"Our earnings have drastically dropped," said Sipayung, owner
of a roadside book kiosk in Senen, Central Jakarta, as quoted by
Antara.(pwn)