Home / Knowledge / News / Apparel/Garments / Rise in power tariff to hurt Indonesian garment sector
Rise in power tariff to hurt Indonesian garment sector
16
Mar '12
The planned 10 percent rise in electricity tariff is likely to negatively impact the garment industry in Indonesia, which is already facing trouble due to weakening export demand amid the eurozone debt crisis.

Speaking to fibre2fashion, Mr. Ade Sudrajat, Chairman, Indonesian Textile Association (API), said, “The Government is planning to raise the electricity tariffs by about 10 percent over the existing tariff rates from July this year.”

Explaining the affect of rise in power tariff on Indonesian garment industry, he says, “Indonesia has a good textile industry set up from the upstream fibre-making to downstream apparel-making, which includes all the processes that come in between. For garment industry, the electricity charges constitutes only 1 percent of its cost of production, but for its upstream textile industry, electricity cost accounts for about 15 percent of cost of production. So, the rise in power tariff will have a snowballing effect on fibre-makers, spinners and weavers. This would, in turn, be passed on to the garment industry.”

“This will result in increase in prices of garments and it will especially hurt domestic sales. With the escalating prices, it would become difficult for domestic garment manufacturers and exporters,” he adds.

Last year, Indonesia exported garments worth US$ 13.4 billion, and API expects the country's garment exports to rise by 3-5 percent y-o-y in 2012.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 24th Jul 2017

Govt extends deadline for GST composition scheme to Aug 16

The Government on India has extended the deadline for small...

L-R: Dhanapal, JMD, Best Corporation; Prabhu Damodaran, Convenor, ITF; Narayanasamy, MD, Micro Cotspin; Senthilnathan, MD Rasitex India; and Sabapathy, MD, Prasanna Spinning Mills

Textiles | On 24th Jul 2017

TN mills seek partnership with cotton growing states

Spinning mills in Tamil Nadu are seeking stronger partnership with...

Textiles | On 24th Jul 2017

Irani terms GST as a ‘great step towards transparency’

Union textiles minister Smriti Irani has termed the Goods and...

Interviews View All

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X