Home Facts trade

Indonesia: Increased Energy Charges May Hit Textile Sector Badly

Indonesia: Increased Energy Charges May Hit Textile Sector Badly

Write: Zedekiah [2011-05-20]

Come September, and power supplier of the country PTN, will raise energy costs adversely affecting the country's promising textile sector.

Currently, electricity costs' up to approximately 30 percent of the operating costs in spinning operations and 18 percent for weaving sectors.

Besides, most mills operate 24 hours a day and the electricity company has announced that peak hours supply defined as 6:00 p.m. to 10:00 p.m., will be twice as expensive as that utilized in off peak times.

Further, stiff penalty will be imposed in case preset quota energy level is exceeded over and above the sector company's past average use.

Meanwhile, the Indonesian Textile Association has strongly protested the hike in the energy costs.

www.fibre2fashion.com