Tuesday October 25, 2005

Fuel hikes could cost 60000 Indonesian jobs

chinapost.com.tw :

The Indonesian government's dramatic fuel price raises may force about 200 textile companies into bankruptcy and lead to 60,000 job losses this year. The government, reacting to soaring global oil prices, announced that the cost of gasoline would rise 87 percent to US$0.44 per liter (0.26 gallon), while diesel fuel would more than double and kerosene triple.

The size of the rises, much larger that expected, caught many by surprise, but economists have said that the bold move could help the government - which spent US$7.4 billion last year on fuel subsidies - balance its ballooning budget. The government hopes it will help stave off an economic crisis.

"The closures could cause massive layoffs," Benny Sutrisno, chairman of the Indonesian Textile Association, told Dow Jones Newswires. Indonesia's 2,760 garment and textile producers account for the bulk of the country's non-oil exports. Textile exports contributed around 13 percent of Indonesian gross domestic product in 2004.

See also :

1. Southeast Asia faces diverse energy challenges : Morgan Stanley
2. Panic petrol buying in Indonesia ahead of price hike
3. Indonesia Becomes A Net Crude Oil Importer

(2005-10-25 14:37:09 SGT) [Energy] Permalink

Most popular blog postings on lowem.log :

1. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004
2. Baltic Dry Index falls 93% as shipping rates plunge, signalling global economic collapse
3. Singapore SIBOR rate falls to 1.31%, lowest since Nov 2004
4. Singapore SIBOR interest rates fall to 1.5%, lowest since Dec 2004
5. Live spot gold price quotes chart on COMEX
6. 2010 Honda Civic Hybrid preliminary specifications released
7. Fuel prices seen stoking Malaysia inflation in 2008
8. How to insert currency exchange rates into Google Spreadsheets

Featured articles on lowem.log :

1. ABC Guide to Beating Inflation in Singapore and Elsewhere
2. Singapore inflation rate hits new 26-year high of 7.5% in Apr 2008
3. Baltic Dry Index falls 93% as shipping rates plunge, signalling global economic collapse
4. 67000 China factories closed in H1 2008 as global economic collapse takes hold
5. 2010 Honda Civic Hybrid preliminary specifications released
6. Peakoiler buys 2008 Honda Civic Hybrid FD3
7. NYMEX crude oil recovers from $32.40 low after 2.2 mbpd OPEC production cut announced
8. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004