INDONESIA: Synthetic Fibre Producers Agree Price Hike
Indonesian synthetic fibre producers are reported to have agreed on a 13 per cent price increase on all output in an attempt to counter balance the expected rise in fuel prices to the industrial sector.
Fuel prices to the industries are set to rise following the government's decision to remove energy subsidies from the state budget, a move that Risa Bhinekawati, the secretary of the Indonesian Association of Synthetic Fiber Producers, believes will place a heavy burden on the fibre producers.
Risa told the Bisnis Indonesia newspaper: "The energy price hike plan would cause production cost to soar and for that reason the price of synthetic fibres must be hiked along by a minimum of 5 per cent and a maximum of 13 per cent representing a range of $0.03 - 0.05 per kilogram."
Producers are currently preparing themselves for a drop in demand following the implementation of the price rise on 1 April 2001.
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