Industry Starts Switching to PLN Electricity Amid Coal Scarcity

The industry is shifting to PLN-sourced electricity from using its generator. Difficulties in obtaining coal supplies become one of the factors driving the shift. General Chairman of the Indonesian Filament Yarn and Fiber Producers Association (APSyFI) Redma Gita Wirawasta said the textile and textile product (TPT) industry has generally switched to using PLN electricity. "Our members have turned off the power plant and switched to PLN," he said.

Besides the difficulty in obtaining coal supplies, competitive tariffs are also one of the causes. "We use PLN electricity because of PLN's competitive tariffs and the stability of its electricity supply. PLN's services have gotten better," Antonius Marcos, Director and Corporate Secretary of PT Indocement Tunggal Prakarsa Tbk, said.

According to Institute for Essential Services Reform (IESR) Executive Director Fabby Tumiwa, as coal prices soared, it was much cheaper for the industry to use electricity from PLN. This is because PLN gets coal at US$70 per ton, while the industry has to buy coal at market prices and only recently got a special price of US$90 per ton.