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 Oct 2016

Arvind to dilute 10% stake in brand business arm

Arvind Limited, one of India’s largest integrated textile and apparel ...

Courtesy: Commonwealth Bank of Australia

Textiles | On 25th Oct 2016

World’s first cotton shipment using Skuchain’s Brackets

The world’s first trade transaction involving shipment of cotton...

Textiles | On 25th Oct 2016

Cotton yield to increase to 568.29 kg/ha in 2016-17: CAB

At its first meeting for the cotton season 2016-17, the Cotton...

Interviews View All

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Awen Delaval

'Natural fibres are appreciated for traditional authenticity'

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Kevin Nelson

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

Karan Arora
Karan Arora

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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

October 2016

October 2016

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


Browse Our Archives


Advanced Search