Ceramic producers demand govt help<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Local ceramics producers are crying out for government help in
\nfacing an influx of cheaper Chinese-made products, which they say
\nare threatening their survival.<\/p>\n
Many local producers have either gone bankrupt or cut their
\nworkforce due to poor sales as a result of the flood of Chinese-
\nmade products, the Indonesian Ceramics Association (Asaki) said.<\/p>\n
It warned that more companies could experience the same fate
\nunless the government did something to help.<\/p>\n
\"About three ceramics firms have closed down over the past two
\nmonths while many others have temporarily laid off workers,\"
\nAhmad Wijaya, vice chairman of the association, told The Jakarta
\nPost over the weekend.<\/p>\n
The association has about 60 members.<\/p>\n
He said the country's ceramics factories, which have a
\ncombined production capacity of 200 million square meters of
\nceramics every year, are now operating at between 50 percent and
\n70 percent of capacity.<\/p>\n
Ahmad said local producers were still puzzled as to why
\nimported Chinese ceramics were able to be sold cheaper than local
\nproducts on the Indonesian market.<\/p>\n
\"It is hard to belief as the importers must pay the shipping
\ncosts to bring the Chinese products to the local market. But,
\nthis is the reality that we are facing now,\" he said.<\/p>\n
Ahmad said the association had often complained about the
\nproblem to the Ministry of Industry and Trade, but it was still
\nwaiting for action.<\/p>\n
One of the solutions proposed by the association is that the
\ncurrent 10 percent import tariffs on the two main raw materials
\nfor ceramic products -- glaze and feldspar -- be eliminated.
\nGlaze and feldspar are substances used as coatings to give
\nceramic products their glossy appearance. Indonesia imports these
\nmaterials from India, Italy, France and a number of other
\nEuropean countries.<\/p>\n
\"We want the government to eliminate the tariffs on these two
\nmaterials so that our products can compete with the imported
\nproducts,\" he said.<\/p>\n
The association has also called for the removal of luxury tax
\non sanitary ceramic products, including toilet bowls and bathroom
\nsinks. The tax on these now stands at 25 percent.<\/p>\n
The association also blasted the government's approval of
\nstate gas distribution company PT PGN's plan to raise the price
\nof gas to US$2.5 per million British thermal units (MMBTU) next
\nmonth, up from the current $2.3 per MMBTU.<\/p>\n
It said the price increase would raise its members' production
\ncosts by 15 percent, and aggravate their difficulties.<\/p>\n
\"We aren't asking for subsidized gas from the government. We
\njust want the plan to be delayed until conditions get better,\" he
\nsaid.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ceramic-producers-demand-govt-help-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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