The Association of Indonesian Local Brand Owners(AMIN) of various industrial products such as electronic, cosmetic, food and beverage and herbal medicine reject the plan, its general chairperson, Putri K Wardani, said here on Wednesday.
She said the 15 percent rise would make the cost of herbal medicine and cosmetic production to increase by 14.75 percent.
She said it would be better for the government to revoke the subsidy given to the 450-900 KwH bracket customers that number up to 40 millions.
"If the subsidy for households is revoked it would raise revenue from the cost of electricity burden by Rp4,000 to Rp5,000 a month and this is cheaper than the monthly cost of cellphone credit reaching between Rp50,000 to Rp100,000.
The secretary general of the Association of Indonesian Food and Beverage Producers (GAPMMI), Franky Sibarani, meanwhile said the food and beverage industry has suffered this year following the rise of raw materials prices, such as wheat flour, soy beans and sugar as well as labor wages by 20 to 26 percent in Banten, West Java.
The hike in the price of gas for industries by 35 percent as of September and another 15 percent later in April 2013 would make the food and beverage industry to be further hurt, he said.
"Problems such as logistical costs, illegal levies, bad infrastructure have so far already burdened the industry," he said adding the hike in the electricity tariff has the potential to raise the price of products by five to 10 percent.
The executive director of the Indonesian Iron and Steel Industry Association (IISIA), Edward Pinem, meanwhile added electricity cost in steel production could reach up to 20 percent making competitiveness of domestic products to be low.
"An electricity tariff hike would hurt domestic industrie and therefore must immediately settled by the government," he said. (*)
Editor: Heru Purwanto
Copyright © ANTARA 2012
