Home / Knowledge / News / Textiles / Rise in power tariffs to affect Indonesian textiles: API
Rise in power tariffs to affect Indonesian textiles: API
Dec '13
The Indonesian textile industry growth prospects are estimated to remain sluggish during the 2014 year, owing to the planned increase in electricity power next year, said Benny Soestrisno, chairman of the advisory board of the Indonesian Textile Association (API).
Mr. Soestrisno said the rise in electricity tariffs goes against the Government’s aim to improve competitiveness in domestic industries, especially during the phase of ASEAN Economic Community (AEC), which will take effect from 2015, reports The Globe Journal. 
According to the API official, the plan to raise electricity tariffs next year would undercut the competitiveness of the manufacturing industry, especially textiles. The electricity tariffs would automatically affect the production costs which are expected to rise by 3 to 4 percent.
Moreover, the API official said investments in the textile industry next year would also be stagnant due to the Bank of Indonesia’s decision to raise its benchmark interest rate, which would hamper the arrival of foreign investors in Indonesian textiles. 
However, Mr. Soestrino said textile and apparel sector would experience significant growth in exports during 2014, owing to the improvement in the economies of countries like the US and Europe.
The Government of Indonesia raised electricity tariff by 15 percent in 2013, and plans to increase the electricity price starting early 2014 as well as withdraw power subsidies from four groups of customers—large households, medium-sized businesses, large sized business and medium-sized government offices.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Robert Brunner

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

March 2017

March 2017

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


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search