THE MODELS OF COAL DEMAND FULFILLMENT AS OIL FUEL SUBSTITUTE TO SUSTAIN WEST JAVA TEXTILE INDUSTRIES

• Main Author: ANGGA KUSUMAH (NIM : 22110004), ASEP
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/19931
• Institution: Institut Teknologi Bandung

Nowadays, oil fuel still plays an important role as a main source of primary energy. However, the increasing of oil price in the last few years gives significant impact toward Indonesian industries, particularly textile industries in West Java. Higher production cost caused by the increment of oil price along with the DMO coal policy issued by the Indonesian government had encouraged textile industries to diversify their source of primary energy into coal. Benefit and cost analysis which is used in this research shows that coal usage is far more efficient than oil fuel. Furthermore, the econometrical model could explain the interconnection of variables in coal demand fulfillment model. The simulation shows that when all textile industries divert their source of primary energy into coal, the present and future coal demand could be fulfilled if supported by a good infrastructure development (Diversification and Infrastructure Expansion Scenario). Adversely, if the infrastructure was not adequately prepared, the future of coal supply will never fulfill the demand (Diversification Scenario). The forecast shows when all the textile industries in West Java had successfully divert to coal utilization, the coal demand will be 18,4 million tons or about 4,78% from the current national coal production (2012) that reached 386,4 million tons.