The Indonesian Filament Fiber and Yarn Association (APSyFI) welcomes the government's decision to ban coal exports for 1–31 January 2022. Secretary General of APSyFI Redma Gita Wirawasta said the ban on coal exports would have an impact on stabilizing textile production utilization, which currently has reached 80-95 percent, including export-oriented ones. "The ban on coal exports will not increase the utilization because it is already high, but if it is not prohibited, our utilization could collapse," he said, Tuesday (4/1/2022).
Redma explained that when domestic supply of coal stagnated due to a sharp increase in export volume driven by price increases, many business players shifted their energy consumption from independent power plants to PT PLN (Persero) for reasons of efficiency.
However, if the supply of coal to PLN also falters, the fate of the domestic manufacturing industry will be at stake. In addition, according to Redma, the policy of banning coal exports will not necessarily erode national shipping performance, it will have an impact on overall economic stability.
"I think the calculation is not limited to reduced export [performance], but the economic impact that will occur if coal exports are not prohibited," he said.
For industrial sectors that are hungry for energy, such as textiles, cement, steel, food and beverages, and others, the availability of energy is crucial even though the cost structure of production does not rank first.
The government through the Ministry of Energy and Mineral Resources (ESDM) has officially banned coal exports during this month, according to the Decree of the Minister of Energy and Mineral Resources No. 139.K/2021 concerning the fulfillment of domestic coal needs. In this regulation, a domestic market obligation (DMO) of 25 percent has been regulated.