Home / Knowledge / News / Textiles / Govt to restrict power rate hike at 18%

Govt to restrict power rate hike at 18%

21
Jul '10
An Energy Minister recently stated that, the government, moved by strong criticisms from the side of industry circles, has agreed to restrict the hike proposed by it in the rates of electricity to 18 percent.

Energy and Mineral Resources Minister, Darwin Zahedy Saleh, while speaking before the House of Representatives Commission VII, an authority supervising the energy and mineral resources, informed that, the raise would be maximum to the extent of 18 percent for industries, while the raise on an average would be somewhere around 10-15 percent.

The Ministry on July 1 came out with a ministerial directive specifying the new rates for electricity. Government in previous consultation with the House and the business community asserted that, the rates would at the most be hiked by 18 percent and that the average would be maintained at 10 percent.

Nevertheless, the regulation later, was strongly criticised by a number of business groups who contended that, the raise actually was much on the higher side than that assured by the government.

Indonesian Employers Association (Apindo) Chairman, Sofjan Wanandi, who was also present at the consultation at the House, said that, as per their computations the actual rise in rates ranged somewhere around 39 to 101 percent.

In the meantime, at some other room of the House, 32 business organizations moved the House Commission VI supervising the trade, industry and investment, with their demands to shelve the regulation.

Ade Sudrajat, Deputy Chairman of the Indonesian Textile Association said that, the recent hike in power rates would hike the prices of Indonesian textiles by around 7.2 percent. He continued by saying that, this would render the domestic products in-competitive in their own country as the price hike is not going to have an impact on imported goods.

According to Silmi Karim, Deputy Chairman of the Indonesian Young Entrepreneurs Association (Hipmi), such raise would beget higher inflation rate compelling the Bank Indonesia to hike its standard rate of interest.

This construes that, the capital cost for businesses will go up and this won't be favourable news for small and medium enterprises, constituting around 95 percent of Hipmi's member list.

Fibre2Fashion News Desk - India


Must ReadView All

Pic: UKFT

Textiles | On 6th Apr 2020

UK extends COVID-19 business interruption loan scheme

The UK Fashion & Textile Association (UKFT) has announced that the...

Pic: Shutterstock

Apparel/Garments | On 6th Apr 2020

GMAC urges buyers to fulfil purchase contracts

The Garment Manufacturers Associations in Cambodia (GMAC) has...

Pic: Shutterstock

Information Technology | On 6th Apr 2020

Odd Concepts attracts funds despite Covid-19 crisis

Odd Concepts, an AI-based fashion tech company, has been able to...

Interviews View All

Headhonchos, Indian fashion industry

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Top executives, Textile Industry

Top executives
Textile Industry

We will move away from mass production to production in micro-factories

Top executives, Textile industry

Top executives
Textile industry

The new deal is better than NAFTA for the US textile industry

Alessandro Marengo,

Alessandro Marengo

Founded in 1974, Italian firm Zaitex SpA is one of the leading suppliers...

John Elmuccio,

John Elmuccio

Evolution St Louis is a company setting up a high-tech knitting facility...

Mehul Vithalani,

Mehul Vithalani

Gopi Knitts is one of the most celebrated manufacturers and suppliers of...

Mark Paterson, Technical Absorbents Ltd

Mark Paterson
Technical Absorbents Ltd

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

Kerem Durdag, Biovation II LLC

Kerem Durdag
Biovation II LLC

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

Paige Mullis, Glen Raven Inc

Paige Mullis
Glen Raven Inc

Paige Mullis discusses the expansion plans of Glen Raven Inc in India, and ...

Priya Somaiya, Usha Social Services

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant & Nandita are known for being inspired by...

Sandeep and Sarah Shaikh Gonsalves, SS Homme

Sandeep and Sarah Shaikh Gonsalves
SS Homme

SS Homme celebrates the craft of traditional tailoring through the bespoke ...

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

Leave your Comments


April 2020

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


Advanced Search