VIVAnews - Indonesian Employers Association (Apindo) stated that the current domestic fuel price decrease has affected the costs of transportation in industrial sector by seven to eight percent. However, the association claimed that they have not cut the prices of their products.
Apindo's head, Sofjan Wanandi, said that fuel price decrease only affects industries by two percent. "But the calculation goes differently because other costs must be taken into account," he said on Wednesday, Jan 21.
Wanandi said that due to depreciation in Rupiah exchange rate, the cost composition of raw materials and production has been altered.
The government has decreased fuel prices three times as of December 2008. Premium fuel price was down from Rp 6,000 to Rp 4,500 per liter and diesel price decreased from Rp 5,500 to Rp 4,500 per liter. Kerosene price remains at Rp 2,500 per liter.
Translated by: Bonardo Maulana Wahono
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