"We hope the government suspends the electricity tariff raise until next year, because the high production costs could result in a reduction in the number of employees," said Apindo Chairman Sofyan Wanandi.Jakarta (ANTARA News) - Indonesian Employers Association (Apindo) rejected the government`s plan to raise electricity tariff along with the fuel price hike on April 1.
"We hope the government suspends the electricity tariff raise until next year, because the high production costs could result in a reduction in the number of employees," said Apindo Chairman Sofyan Wanandi here Wednesday.
The government`s plan to raise the electricity tariff by 10 percent for business and industry groups could also disrupt the performance of companies and will also reduce the competitiveness of domestic production.
Sofyan said that when production costs rise it may lead to reduced sales, resulting in low production and also a reduction in labor.
"There is no other way if the government insists on raising the tariff. We are already unable to compete with cheaper imported goods," said Sofyan.
Sofyan said that smaller companies will not be able to shoulder the burden, so there is the possibility of such companies being shut down, and the first to be affected would be small and medium business units.
"These conditions will not only raise the number of the unemployed but also increase poverty. The national economy believed to be improving now will also slow down," he said.
The electricity tariff increase would impact the economy badly, especially with the people`s declining purchasing power due to the fuel price hike.
"State-run Electricity Company (PT. PLN) has stated that in 2011 it recorded a profit of over Rp11 trillion, so the electricity tariff hike could be put on hold," he said. (*)
Editor: Heru Purwanto
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