CERAMIC INDUSTTRY DEPENDS ON GOVERNMENT’S POLICY

           National ceramic industry operators are optimistic that domestic market has quite significant potency for growth and development of national ceramic industry. Data of Indonesian Ceramic Industry Association (ASAKI) shows that ceramic sales in Indonesia in 2010 reach Rp. 17 trillion or increase 30.7% if compared to 2009 at Rp. 13 trillion. Increase in sales is supported by rapid growth of property sector which mostly absorbs ceramic. For this year, ASAKI sets target of ceramic sales in domestic market at Rp trillion or increases 17.6% from 2011.

          The target can optimistically be reached because in addition to the very big market potency, national ceramic consumption at present is low. ASAKI data stated that ceramic consumption per capita is only one square meter. While, in ASEAN countries, ceramic consumption has reached more than two square meters. Ceramic development in Indonesia, such as ceramic tiles, table wares, sanitary, or ornamental ceramics have achieved a satisfactory result, whether from the aspects of capacity, revenue acquirement, or absorption of workers so that ceramic product can be designated as leading product in accelerating national economic activities.

            Currently, Indonesia is the fifth largest ceramic tile producer in the world with a capacity of 32 million square meters so it is expected to be able to fulfill domestic demand, and is still prospective to be developed. Yet, however, it does not mean that national ceramic industry did not face any problem. One of the problems faced by national ceramic industry is low gas supply in addition to unsatisfactory infrastructure condition.

            General Chairman of ASAKI, Achmad Widjaya, stated that the target set for 2010 can be realized if the government could ensure gas supply to ceramic industry and to improve infrastructure condition. According to him, the target is much dependent on government’s policy. Producers are more focused on domestic market due to its improving condition.

             Currently, the problem faced by national ceramic industry operators is no longer competition with ceramic products imported from China, but problem of gas supply. He said that price of ceramic product made in China is already expensive so consumers choose to buy local products. But, the problem is that ceramic producers have difficulty in fulfilling domestic demand as there is no assurance of gas supply from the government. Quoting ASAKI data, volume of national ceramic production currently reaches 247 square meters per year.

           Achmad admitted that since the past three years, national ceramic producers have been complaining about limited gas supply, whether from the aspect of quantity or quality. Gas is used to burn feldspar and silica sand which are the main raw materials. He explained that national industry, including ceramic industry, this year is haunted by problem of shortage of supply of gas as fuel. National industry’s demand for gas reaches 1,500 millions metric standard cubic feet per day (MMSCFD), but only around 800 MMSCFD that has been fulfilled.


 Business News, February 8, 2012