Textile industry will stressed as the Government plans to increase electricity basic tariff (TDL).
The decision would unfavourably affect the production cost, said Umar Achmad, Chairman of the Pekalongan chapter of the Indonesian Businessmen Association.
Textile businessmen in Pekalongan have been already facing hardships due to last year`s oil-based fuel hike and new regulation on workers` minimum wage being applied since January 2006, he said.
Government's action would "add fuel into the fire" as the textile industry fears bankruptacy.
This in turn will have cascading effect on thousands of workers, who would be deprived of their bread and butter, Umar complained.
Local textile companies are struggling to survive to prevent lay-offs. However, if the government sticks to its plan to increase the electricity rate, the business lobby is helpless, said Umar.
Companies were in tight corner because if they wish to continue their production, they would have to suffer a huge loss due to high production cost, he added.
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