"In principle, an increase in the price of electricity by 15 percent will have a negative impact on the industrial sector. It will also increase the production cost of steel and cement industries, and the operating cost of hotels and shopping centers by up to 10 percent," said Haryadi Sukamdani, spokesman for the Indonesian Chamber of Commerce and Industry (Kadin), on Wednesday.
According to him, an increase in the production cost will force companies to enhance their efficiency and revise the price of their products.
"Companies will have to consider the competitiveness of local products when revising the price of their products. If the cost of the products is too high, the products will lose their competitive edge," Haryadi said.
Meanwhile, Panggah Susanto, director general of the manufacturing industry at the ministry of industry, said an increase in the price of electricity will affect the industrial sector.
"It will have a negative impact on the industrial sector because the electricity rate hike will be followed by an increase in the price of gas, distributed by PT Perusahaan Gas Negara," said Susanto, adding that the price of industrial gas had risen by 35 percent on September 2012.
He said an increase in the cost of electricity and gas will reduce the competitiveness of domestic industrial sectors.
(O001/INE/H-YH)
Editor: Suryanto
Copyright © ANTARA 2013
