Textile entrepreneurs are not expected to switch back to using coal even though special prices have been extended to all industrial sectors starting April 1, 2022. General Chairperson of the Indonesian Filament Fiber and Yarn Association (APSyFI) Redma Gita Wirawasta said entrepreneurs must first calculate between operating their own power plant using coal and PLN's electricity tariff. Since the price of coal soared last year, textile entrepreneurs who have independent power plants have shifted their power to PLN because they are considered more efficient.

"I'm a bit pessimistic, because first we have to calculate again, running the power plant itself with electricity [PLN]. We don't know how much electricity [tariff] will increase," said Redma, Friday (8/4/2022).

In addition, Redma also doubts the certainty of coal supply for industry even though the government has set a domestic market obligation (DMO) price of US$90 per metric ton. The reason is, the amount of DMO remains unchanged by 25 percent.

Coal entrepreneurs who have fulfilled their DMO quota will be reluctant to supply at this special price. "If their DMO has reached 25 percent according to the regulations, and PLN has taken all of it, he can sell it above that price. Because they feel they have complied with the DMO rules, they want to export at a higher price," he said.

In 2020, when the DMO price was set at US$70, the textile industry found it difficult to accept the set price. Redma said that at that time the average yield was US$120 per metric ton. That too with a tight supply.

The Ministry of Energy and Mineral Resources (ESDM) has allocated 1 million tons of coal for the textile industry this year. However, currently Redma admits that very few textile industries have purchased coal for their own power plants.

"If there are no textiles, everything has moved to PLN," he said.