National Textile Industry Growth Under the Shadow of Basic Electricity Rate Rise
By : Ridwan And Aldi Firhand. A | Thursday, February 01 2018 - 19:26 IWST

Textile Production (Illustration)
INDUSTRY.co.id - Jakarta - The government's plan to change the formula for non-subsidized electricity tariffs by including coal prices as one of the basic electricity tariff calculation components (TDL) has come under fire from textile entrepreneurs incorporated in the Indonesian Textile Association (API).
Understandably, the price of coal is smoldering. For the February contract at Newcastle today, the price of coal reaches 107.7 US dollars per ton while in the Rotter market and the price is around 90.85 US dollars per ton.
Vice President Director of PT Pan Brothers Tbk (PBRX) Anne Patricia Sutanto said the change in TDL formula has the potential to make non-subsidized electricity tariffs, including industrial electricity. The increase has a big impact because the textile industry, especially in the upstream sector requires considerable electricity.
"Later, most of which will be affected in the upstream, the highest investment in which it requires energy so it will require higher electricity than clothing or garment," said Anne at Menara Kadin Indonesia, Jakarta (31/1/2018).
Anne added, the Indonesian Textile Association (API) was observing the plan of the ESDM Ministry. He also hopes, the policy issued by the government does not burden the industry.
"We will ask the government to see benchmarks from other industries in other countries because we must be competitive from the domestic side not only domestic but also outside," he said.
According to him, so far the textile industry is dependent on exports. Meanwhile, the national textile industry is facing tough competition from neighboring countries such as Vietnam which is very efficient, especially in terms of workers' wages.
"The government should encourage the national textile industry to compete in the global market, we must ensure that our industry of Indonesia industry can really compete domestically and abroad," said Anne.
For that, continued Anne, it also considered to discuss with the Ministry of Industry regarding this new policy plan. "This discussion also analyzes the impact of electricity tariff increase on textile industry," he said.
Read Also
Textile industry export target worth 30 billion dollars in 2025
Bekraf Supports the Fashion Industry e-commerce
PT Pan Brothers Ensures Application of Industry 4.0 Will Not Reduce…
Indonesian Products Compete at Design Competition in Japan
Lenzing Group Introduces Special Industrial Fiber Segments From Natural…
Today's Industry

Senin, 19 April 2021 - 19:05 WIB
Another Six Million Doses of Vaccine Bulk Arrives in Indonesia
The Government has announced it has received six million doses of Sinovac’s COVID-19 vaccine bulk from China, which is part of the supply of 140 million doses to be received this year.

Senin, 19 April 2021 - 18:50 WIB
Manpower Minister Issues Circular on ‘Mudik’ Restrictions for Workers, Migrant Workers
Minister of Manpower Ida Fauziyah on 16 April 2021 issued Circular Number M/7/HK.04/IV/2021 on Restrictions on the 1442 Hijri Eid al-Fitr Mudik (Annual Exodus) for Workers and Indonesian Migrant…

Senin, 19 April 2021 - 17:50 WIB
Fisheries Minister Reminds Exporters of Fishery Products to Obey Tax Rules
Ministry of Marine Affairs and Fisheries encourages domestic fishery products to compete in global markets as the licensing and certification procedures have been simplified.

Senin, 19 April 2021 - 17:00 WIB
Stay Vigilant as Pandemic is Real and Not Over Yet, President Jokowi Says
President Joko “Jokowi” Widodo Monday (19/04) inspected vaccination for artists and cultural practitioners at the Indonesia National Gallery in Central Jakarta.

Minggu, 18 April 2021 - 22:10 WIB
Citi Indonesia Reiterates Commitment to Customers During Sale Process of The Consumer Bank Business
Citi today reaffirmed there would be no immediate change to how it serves its local consumer bank customers, as it commences the sale process of its Indonesian consumer business, following the…
News Comment