Increasing demand
for building materials at home, in line with the Government’s plan to run
development at titanic scale toward the Asean Economic Community by end of 2015
demanded players of the building material industry to anticipate upjump of
demand. The vast amount of need for construction materials called for effective
strategy for increasing output capacity of the industry. The Government
motivated national businesspeople in the industry including collaboration with
foreign industrialists.
Indisputably, the building material
industry was now the Government’s new source of income to meet the 300% export
target for the next 5 years. Evidently export of building materials to many
countries had been able to score a 2 digit growth each year. Nus Nuzulla Ishak,
Director General of National Export Development, Ministry of Trade stated in
Jakarta on Thursday (4/6) that the Government was encouraging national businesspeople
not just to meet domestic need but also to promote export of building
materials.
Data of the Ministry of Trade had it
that through 2010 – 2014, export of building materials grew on the average by
11.13% per year from USD 1.55 billion to USD 2.45 billion (around Rp.31.8
trillion) per year for market of Singapore, Thailand, Australia and the USA.
According to Nus Nuzulia Iskak, the
growth potential for export of building material industry in Indonesia was
remarkably high. This was because Indonesia had abundant resources of natural
raw materials.
Today the market potential of
building materials for the world worth USD 400 billion not including Saudi
Arabia where infra-structure building was going on remarkably fast. Nur rated
that product quality was advancing as well. Indonesian building materials
products were well. Indonesian building materials producers were making
expansions abroad.
Nur elaborated that beside the
export market, of building materials product at home had been growing significantly,
being driven by fast growing property projects and real estate at home,
increasing private investment and Government’s expenditure. The contribution of
construction sector to national GDP at home had grown from around 7.07% in 2009
to become 13% in 2014 which had jacked up growth of building material industry
in Indonesia.
The construction sector played its
important role in the economy of a nation because it influenced most of other
sectors and was important contributor to infra structure building as storng
physical foundation for national development.
Therefore in tandem with all the
effort to build the construction sector, this year the Government of RI set
economic growth target at 5.8% with infra-structure sector as the main
propeller of growth.
Meanwhile in terms of need for
cement as building material, the Ministry of industry estimated total national
capacity of cement in 2017 would come to 102 million tons to meet total need of
70 million tons per year in line with high investment in the cement industry.
harjanto, the Director General of Chemical Industry stated that although there
would be over production of cement, he would not propose the industry to be
categorized as negative list of investment. Besides, other technical requirement
was that production capacity of a cement factory must not to be more than 3
times the need for cement in a province.
Furthermore the technology being
applied must be environmentally friendly and energy efficient. Hence the
investment entering the industry must be really competitive, green and be located
outside Java. Furthermore there were some technical specification to be
fulfilled by investors. (SS)
Business News - June 10, 2015
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