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

Apparel/Garments | On 26th May 2017

PVH Corp Q1 2017 revenue rises 4%

The first quarter revenue of fiscal 2017 at apparel marketer PVH Corp ...

Courtesy: Levi Strauss & Co

Apparel/Garments | On 26th May 2017

LS&Co. to fund water saving solutions

LS&Co. will fund to the tune of more than $350,000 the solutions...

Apparel/Garments | On 26th May 2017

Christian Dior, Nike top apparel companies - Forbes

Christian Dior, Nike, and Inditex have topped Forbes' 2017 Global...

Interviews View All

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Kai Poehler
Voith Paper GmbH & Co. KG

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

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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