Sunday, 05 January, 2014 | 11:46 WIB
LPG Price Hike Causes Small Food Industry's Production to Plunge
TEMPO.CO, Jakarta -
Indonesian Food and Beverage Association (Gapmmi) Secretary-General,
Franky Sibarani, said the price of 12-kg liquid petroleum gas (LPG)
increased 68 percent or Rp122,000 per tank, which further weakened the
conditions of small to medium food industries to continue competing. As a
result, his party promised he would coordinate with people from food
and beverage industries in the near future to discuss about the
possibility of increasing selling prices.
He advised that for small and medium industries to decrease their production capacity and delay their plans to expand their production. He also explained that from the total food and beverage industry, 99.5 percent consisted of small and medium industries. "Medium-large industry is only 0.5 percent, so 99.5 percent is small-medium households," he said.
PT Pertamina had previously made the decision to increase 12-kg LPGs. The state-owned company’s spokesman, Ali Mundakir, said from January 1, the price of non-subsidized gas increased to approximately Rp3,959 per kilogram, or Rp122,000 per tank, which was previously Rp78,000.
GALVAN YUDISTIRA
He advised that for small and medium industries to decrease their production capacity and delay their plans to expand their production. He also explained that from the total food and beverage industry, 99.5 percent consisted of small and medium industries. "Medium-large industry is only 0.5 percent, so 99.5 percent is small-medium households," he said.
PT Pertamina had previously made the decision to increase 12-kg LPGs. The state-owned company’s spokesman, Ali Mundakir, said from January 1, the price of non-subsidized gas increased to approximately Rp3,959 per kilogram, or Rp122,000 per tank, which was previously Rp78,000.
GALVAN YUDISTIRA
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