Indonesian steel imports could increase on power subsidy cut

摘要

Indonesia's plan to axe electricity subsidies for industrial users this year could increase the country's steel imports, an industry body said, warning that bigger iron smelters could close their operations before paying a 64 percent hike in rates. The staged increases to industrial power tariffs due to commence in May and continue until the end of the year are among government reforms to alleviate some of the roughly 280 trillion rupiah ($24 billion) Southeast Asia's largest economy expects to spend on energy subsidies in 2014.