Coal-waste recycling plant to be built near Bandung

Andi Haswidi, The Jakarta Post, Jakarta

In collaboration with the Bandung regency administration and the Indonesian Textile Association (API), the Industry Ministry plans to develop a coal-waste recycling plant near the West Java capital, a senior ministry official says.

Director General of Metal, Machine, Textile and Miscellaneous Industries Anshari Bukhari said Friday in Jakarta that the construction of the recycling plant, which will convert coal-waste into bricks, paving blocks and road-building materials, would be financed by a central government grant, and contributions from the Bandung regency administration and API members.

The plant will use the coal waste produced by textile firms operating in Bandung regency and surrounding areas, he said.

"Besides the textile industry re-equipment program, we have also allocated Rp 1.5 billion (about US$164,800) for the development of the coal-waste recycling plant this year," Anshari said.

He said the ministry would also develop similar plants in Tangerang, Banten and Purwakarta, West Java, in 2008.

Over the last couple of years, almost all textile producers have switched from using oil-based fuels to coal to run their generators and boilers.

According to a report from the ministry, in West Java province's Bandung regency alone, there are now 4 synthetic fiber plants and 65 other factories that use coal as a power source, with average consumption amounting to 60,000 tons of coal per month.

The burning of coal produces air waste or fly ash, and solid waste known as bottom ash. One ton of coal produces 120 kilograms of fly ash. Therefore, the four fiber plants and 65 factories produce at least 15,000 tons of fly ash per month, the report says.

This figure is expected to increase as more factories switch to coal due to the high prices for oil-based fuels charged to industry.

Bandung Regent Obar Sabarna had previously reported even high figures for coal use than the ministry, saying there were now about 120 factories within his jurisdiction that used coal. However, only one of these, PT Daliatex Kusuma, employed a comprehensive waste management system.

Deliatex was recently appointed by a research and development group from Japan, NEDO, as its partner for the development of water saving equipment for textile dyeing and finishing. The research will cost some Rp 50.6 billion, with about Rp 46 billion of this being provided by NEDO.

"Currently, there is only one waste processing center, which is located in Cileungsi, Bogor, pretty far from Bandung. This makes it too costly for firms to send their waste there," Director General Anshari said.

When asked about how much the recycling plant would cost, Anshari said there was no firm estimate as yet. However, he stressed that the central government would cap its contribution at Rp 1.5 billion, with the rest of the money coming from the province administration and API.

The government has been striving to revitalize the country's textile industry, which has lost competitiveness against overseas producers due to the fact that up to 70 percent of local firms are equipped with obsolete machinery that is more than 20 years old.

Moreover, the industry is also suffering from a flood of smuggled textile and garment products from China and Vietnam. API has reported that of the 1.013 million tons of textile products sold in 2006, about 50 percent of them were smuggled, 45 percent were local products and 5 percent were imported.

To improve competitiveness, the Industry Ministry plans to inject Rp 255 billion into the industry by subsidizing loans for the procurement of new machinery.

However, the plan still has to be approved by the Finance Ministry and the House of Representative.