House, govt turn down textile producers' demand for low power price

The House of Representatives and the government agreed on Wednesday to turn down the demand of the Indonesian Textile Producers Association (API) for a low power price.

The agreement was reached during a meeting between the House' Commission V, which oversees industry and trade, tourism and culture, cooperatives and small-scale industries, and standardization affairs, and Minister of Industry and Trade Luhut Panjaitan and Minister of Energy and Mineral Resources Purnomo Yusgiantoro.

Purnomo told reporters that the request of the textile producers for low power prices was unacceptable because state-owned electricity company PLN currently needed very much income hike to cope its financial difficulties.

PLN raised power prices for the country's industries in April this year, but the policy has drawn criticism from various associations, including API, which argued the price increase was too burdensome amid the economic crisis and could raise production costs to an extent that their products would not able to compete in the export markets.

Luhut dismissed the argument, saying electricity was only a small cost component in the industries.

Luhut said his office would take tough measures against companies, which protested the power price hike policy. (Epin/Godang)