Wednesday, 10 September, 2008 | 12:19 WIB
TEMPO Interactive, Jakarta: Due to the availability of cheap Chinese products, some Indonesian materials manufacturers are threatened with bankruptcy.
According to Ario N Setiantoro, Head of the Nail and Wire Manufacturers Association (Ipaki), one manufacturer has canceled its operations totally while two others have stopped some of their production.
”We cannot compete with nails from China,” said Ario in Jakarta on Tuesday (9/9).
Local nails are usually sold at Rp10,000 per kilogram while Chinese nails sell for only Rp8,000 per kilogram.
Between January and April this year, imported nails from Chine to Indonesia amounted to 10,000 tons of nail, despite last year’s total only being 13,000 tons.
This does not include Chinese small-sized nail manufacturers in Indonesia.
”We are asking the Investment Coordinating Board (BKPM) to stop importing nails from abroad as the production of local products has almost collapsed,” said Ario.
He suggested that BKPM identify nail suppliers as well as domestic in order to control supply.