Synthetic fiber makers shift to coal

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