Synthetic fiber makers shift to coal

Synthetic fiber makers are turning to coal as an alternative energy source for their factories amid high oil prices -- a move that it is estimated could save a company up to Rp 4 billion (US$421,000) a month in fuel costs, an association says.

The Indonesian Synthetic Fiber Makers Association (APSyFI) also urged the government to facilitate the use of coal in terms of regulations in support of the trend.

"We are urging the government to pay special attention in the form of issuing regulations to promote the use of coal by the industry, as more firms are planning to use it instead of oil," APSyFI chairman Bacelius Ruru said on Tuesday.

Among the government regulations needed was one that would simplify the procedures for firms to establish their own coal- fired power generation facilities.

Meanwhile, Bacelius said that the association had also joined a special working group set up by the Office of the Coordinating Minister for the Economy to boost the country's textile and clothing exports.

APSyFI, along with groups like the Indonesian Textile Association (API) and other associations were making efforts to slash production costs and improve local competitiveness on the global market.

Before the 1997 monetary crisis, Indonesia had 22 synthetic fiber firms producing an average of 1.08 million tons annually, or almost 80 percent of actual maximum capacity.

Nowadays, there are only around 15 firms left in the country producing only 65 percent of the current capacity of 1.23 million tons a year. -- JP