Karawang, West Java (ANTARA News) - The government plan to raise electric tariff is a threat to labor intensive industries, the Indonesian Association of Businessmen (Apindo) said.

Puji Isyanto, the executive secretary of the Karang branch of Apindo, said textile, garment and shoe making companies would be the hardest hit by an increase in electric tariff.

Labor intensive industries are big consumer of power, therefore, the policy would cause a significant increase in production cost, Pudji said here on Wednesday.

Industries are already facing difficulty after recent increase in gas price, he said.

It is feared many companies could not afford additional cost resulting in big cut in jobs for efficiency, he added. (Uu.AS/H-ASG/B003)

Editor: Priyambodo RH
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