Saturday, April 19, 2014

Electricity Tariff Increase Could Impact Factory Closures

The government will raise electricity rates for industry groups I3 ( go public ) with over 300 Kva power of 38.9 % as well as a large industrial group I4 30 thousand Kva power up by 64.7 % from 1 May 2014 . Businessmen also commented .

Chairman of the Indonesian Employers Asoasiasi ( APINDO ) , Sofyan Wanandi assess this increase only as a policy to boost the prestige of the current government . " It's up to the government , who only want to issue a populist policies ," he said in Jakarta as quoted on Saturday ( 04/19/2014 ) .
( Read: opera mini 10 )

He considered that the increase was set too high , especially for industry groups I3 , moreover, this increase is only carried out in stages until the end of the year . " The increase is certainly hard for employers because the increase is too extreme to 64 % , " he continued .

Sofyan also said it has been trying to ask the government to extend the stage gives rise to a longer time for the industry to prepare for the cost of production after the increase is implemented .
" We 've asked for waivers to pay for 3 years , but the government does not want to hear , " he said .

He also reminded the government will impact experienced industry players due to the rate increase and its effect on the growth of national industry .

" The possibility will be followed by a rise in the price of goods , reducing industrial production capacity , they could close the plant if it could not compete with imported goods , laying off workers . If it were so , there is no longer willing to invest in the upstream industry , " he concluded .


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