The increase in subsidized fuel prices since (3/9/2022) has had an impact on many industries, such as cement and textiles. Currently, the company admits that it is calculating to increase the selling price. Director and Corporate Secretary of PT Indocement Tunggal Prakarsa Tbk (INTP) Antonius Marcos said the increase in fuel prices had an impact on logistics and distribution costs. Until now the company is calculating the impact on cement products. "Until now, we are still calculating the estimated increase that will occur," he said, quoted on Monday (12/9/2022).
He even asked the government to provide incentives to the industry to offset the increase in fuel prices. So that the impact of rising diesel and pertalite prices can be muted on the business world.
Chairman of the Indonesian Filament Yarn and Fiber Association (APSyFI) Redma Gita Wirawasta, said that textile and garment companies are still thinking long about raising the price of textile goods.
According to him, logistics prices will certainly increase by around 20-30% although until now they are still waiting for official prices from logistics transport operators. So that later it can be directly charged to the increase in product prices.
But on the one hand, people's purchasing power is making purchases of textile and garment products decrease. In addition, the incessant import of imported products has reduced the market from local textile and garment producers. Local textile and garment products are forced to hold prices.
"That's why we can't increase the price, because there are a lot of imported goods, we should lower it. But if we lower it, we will lose, later we can't buy raw materials anymore. So, we still sell as much as possible at normal prices," he told CNBC Indonesia. .
He also complained that competing with imported products was very difficult because they were much cheaper than domestic products. So the only way is efficiency by stopping production.
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"There have been many who have produced almost all of them from upstream to downstream, stopping production. Upstream has stopped about 30 percent, in the middle what else, as well as 50 percent for fabric," he said.