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TARAKAN — Concerns are mounting among business players in North Kalimantan (Kaltara) over a potential increase in fuel prices (BBM), which is feared to significantly impact industrial operations and potentially lead to layoffs.

Chair of the Provincial Board of the Indonesian Employers Association (APINDO) North Kalimantan, Peter Setiawan, said the effects of rising industrial fuel prices are already being felt across several sectors.

“So far, there has been no official confirmation of a broader price hike. However, industrial fuel prices have already increased significantly, and the impact is substantial,” Peter said on Saturday (April 18, 2026).

He noted that rising industrial costs have led to a surge in logistics expenses, particularly for the shipment of production outputs.

As an example, he highlighted the increased cost of refrigerated container shipments for seafood commodities such as shrimp to Surabaya.

“Container costs have gone up—from around Rp37 million to Rp39.5 million. That’s for refrigerated containers used to transport shrimp,” he explained.

The increase comes at a time when selling prices for many products have yet to adjust, placing additional pressure on businesses, particularly in sectors with limited pricing flexibility.

Peter identified the timber industry as one of the most affected sectors, as wood prices have remained relatively stagnant while operational costs continue to rise.

“In the timber sector, selling prices have not increased, while operational costs keep rising. With the added pressure from higher fuel prices, the impact is significant, and I’m concerned it could lead to layoffs,” he said.

He warned that rising production costs without corresponding increases in selling prices could jeopardize business sustainability, making efficiency measures almost unavoidable.

“If companies cannot operate profitably because input costs keep rising while prices remain unchanged, that is extremely risky,” he stressed.

Uneven Impact Across Sectors

As an organization representing various industries—including mining, timber, fisheries, and cold storage—APINDO noted that the impact of rising costs is not uniform.

Sectors unable to pass on increased costs to consumers are considered the most vulnerable.

“In mining, prices have reportedly increased, so the impact is manageable. But in sectors where prices remain stagnant, the risk of operational disruption is much higher,” he said.

In the fisheries sector, the effects are also beginning to surface, particularly due to rising costs of supporting materials such as plastics and packaging.

This has further increased production costs, even though the sector generally complies with minimum wage regulations (UMK).

“In fisheries, companies follow minimum wage rules, so there are no issues there. But if packaging costs rise while selling prices do not, efficiency measures become inevitable,” Peter explained.

He added that such efficiency measures could lead to reduced production capacity.

“If production was previously 100 tons, it may drop to 60 tons as companies adjust,” he said.

Although not yet widespread, Peter acknowledged that some companies have begun preparing for these potential challenges.

He expressed hope that future government policies would take into account the condition of the business sector to avoid further pressure on industry players.

“If there are further changes from the central government, such as additional fuel price increases, the impact will become more widespread. If prices go down, conditions could stabilize again,” he said.

Peter also emphasized the importance of industrial diesel availability and pricing, which he described as having the most significant impact on industrial operations.

“Industrial diesel has the widest impact because it is the primary fuel used in operations. If prices rise too sharply, companies simply won’t be able to operate,” he concluded.

Source: kaltara.tribunnews.com