The Indonesian Filament Yarn and Fiber Association (APSyFI) revealed that the scarcity of coal has caused an energy crisis in several countries, thereby contributing to pressure on the domestic textile and textile product (TPT) industry. APSyFI Secretary General Redma Gita Wirawasta noted that energy costs contribute up to 25% of the overall cost structure of the textile industry, with the fiber and filament sector being the largest users.
"Coal prices that are above US$170 per tonne have disrupted the continuity of the industry. In addition to the high price following fluctuations in the international market, the supply is also insufficient. We ask the government to intervene so that supply and price are guaranteed," said Redma at a press conference held took place virtual, Friday (15/10).
He continued, his party hopes that the price of coal for industry will be lowered to an economic figure of US$70 per tonne, or equal to the price in 2018-2019.
Redma said the availability and affordability of energy is important to answer the opportunities presented by conditions in a number of competing countries. "The lockdown in Vietnam and the energy crisis in China and India have left market niches, particularly domestically, to be filled by domestic textile players," he continued.
He explained that coal is not only used as an energy source, but also as a raw material for coal gasification. Redma admits that the scarcity of coal has also made some textile industry players switch to using other energy sources, for example using PLN.
Responding to Redma's statement, the Director of Textile, Leather and Footwear at the Ministry of Industry, Elis Masitoh, said that his party had coordinated with the Ministry of Energy and Mineral Resources (ESDM) regarding the fulfillment of domestic coal.
The Ministry of Industry has asked the authority to increase the domestic market obligation (DMO) for the coal industry, which is currently set at 25%. "We continue to communicate with the Ministry of Energy and Mineral Resources to ensure the availability of coal, or for example the DMO will be maintained and even increased," said Elis, Friday (15/10).
In addition, Elis has also made efforts to increase coal production to meet the industry's high demand during the recovery period. Regarding the high price of coal, Elis said the figure will automatically decrease if the supply meets demand.
According to the ICE Newcastle (Australia) market, coal prices fell 1.92% to US$ 255/ton, but for the third day in a row. Previously, this commodity continued to increase by 15.61% and had touched a record high of US$ 280/ton.
