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Indonesia’s textile sector reels under rising coal prices

The Indonesian textile industry is unable to handle the soaring coal prices. When global coal prices soar, many domestic industries that using coal such as cement, petrochemical, and textile experience difficulties. The fertilizer industry, the cement industry, the petrochemical industry, textiles are all energy-intensive industries. 

If the price of products rises, it reduces competitiveness. The textile industry wants the government to take emergency steps to maintain the sustainability of the user industry. Government intervention is needed, especially to prevent price fluctuations of strategic goods such as cement products, textiles, fertilizers, steel, paper, and others. Meanwhile, the textile and textile product sector has had to dig deeper into its pockets for production costs. Currently there are two factories that have turned off their power plants. Meanwhile, six more factories have reduced their generating capacity. 

Moreover, so far the majority of Indonesian coal is used for export. In 2021, of the production target of 625 million tons, the domestic market only absorbs a maximum of around 150 million tons. This means that there are still more than 450 million tons exported.