Fuel Price Rise Seen Harming Exports
DENPASAR ~ In addition to dealing with the rising prices of raw materials, craftsmen have now to contend with the specter of increased gasoline prices.
According to the Head of Indonesian Exporters and Handicraft Producers, Ngurah Pratma Citra, the proposed increase in gasoline prices will have a negative impact on the profit margins as cost of raw materials like wood, bamboo, silver, iron and finishing materials such as paint and sanding have also risen and in the event of increased fuel costs may rise even further.
â€œIt is a tricky situation. The price of product supporting tools is beginning to rise up while the end price of the product remains the same. It is not that easy to revise the price list. If the buyer understands the situation, it is good. If not, then they will look for alternative manufacturers in other countries.â€
Added Citra: â€œSome years ago, when gasoline prices were raised, many buyers turned to other countries, such as Vietnam, Malaysia, Thailand and India.Filed under: The Island