Lower Gas Prices, Ceramic Industry Is Confident To Achieve Fourth Rank Of The World's Largest Producers

Asaki Manager (Photo: Asaki)

JAKARTA - Chairman of the Association of Indonesian Ceramics (Asaki) Edy Suyanto said that the lowering of the basic price of gas for industrial purposes could be a driving force in increasing production output.

"This is important in our activities. But the government must balance it again in terms of strengthening industrial competitiveness, such as limiting certain import ports and setting a minimum import price, "he said in a press statement, Monday, January 25.

Edy believes that the combination of policies to reduce raw materials for production and protection of import tariffs can bring the domestic ceramic industry to reach the glory it did several years ago. In fact, it is not impossible that Indonesia can become the fourth largest ceramic producing country in the world.

"In terms of capacity and capability, our ceramic industry has been able to meet national needs. However, we also continue to encourage the use of modern technology to create innovative and competitive products,” he said.

For information, during the past year, the pandemic outbreak has slowed economic and industrial growth, including the ceramics sector. The utilization of the ceramic industry had decreased to 30 percent in the second quarter of 2020 but started to move up to 60 percent in the third quarter of 2020.

This increase is inseparable from the role of the implementation of the industrial gas price policy of US $ 6 per MMBTU.

"Utilization returned to normal conditions by reaching 70 percent in the fourth quarter of 2020. In addition, the impact of lowering gas prices for the ceramic industry has succeeded in making export volumes increase by 29 percent in the third quarter of 2020 on an annual basis," he said.

Meanwhile, the strength of the ceramic tile industry in Indonesia is supported by 37 companies spread across Banten, West Java, East Java, North Sumatra and South Sumatra. The total installed production capacity is 537 million m2 (8.14 million tons) per year, which absorbs up to 150 thousand workers.