Diamond industries in Indonesia, Belgium to improve ties<\/p>\n
By Rita A. Widiadana<\/p>\n
JAKARTA (JP): Indonesia has long been recognized for its
\npotential as a diamond producing country, yet it seems unable to
\nkeep up with the growth in global trade.<\/p>\n
Indonesia's diamond and jewelry trade has much potential for
\ngrowth. The abundant resources in the diamond mines of Kalimantan
\nand Indonesian craftsmanship support this fact.<\/p>\n
Indonesia is lagging behind neighboring countries such as
\nThailand in the diamond trade. Trade Minister Tunky Ariwibowo
\nstated that Indonesia may be able to surpass Thailand as a
\njewelry producer and exporter in Asia because Indonesia has
\nabundant materials, a large workforce, craftsmanship and
\ntechnology.<\/p>\n
The Central Bureau of Statistics revealed that export revenues
\nfrom the jewelry industry rose sharply from US$241.73 million in
\nl992 to $317.14 million in l993. Last year it is estimated that
\nthe jewelry industry contributed $900 million, putting it at
\neighth in the country's non-oil export revenues.<\/p>\n
However, Indonesia's jewelry exports make up only 0.1 percent
\nof the global exports in the industry, and the diamond industry
\ncontributed very little in revenue.<\/p>\n
Abdurachman Salim, chairman of the Indonesia Diamond
\nInstitute, said that Indonesia's diamond industry is still at a
\nvery basic stage.<\/p>\n
\"Most local diamantaries work traditionally. Indonesia's
\ndiamond industry is not yet competitive because of a lack of
\nexpertise, technology as well as a marketing system,\" he
\nasserted.<\/p>\n
Compared to the gold industry which is now enjoying various
\nincentives from the government, including the exemption of value
\nadded tax for gold bar import, the diamond industry has not
\nenjoyed such regulatory framework.<\/p>\n
The government, Salim added, has not yet supported the
\ncountry's diamond industry effectively. There is, for example, no
\nprecise data on the number of diamonds entering the local market
\nor exported to other countries.<\/p>\n
\"We know nothing about the local diamond industry,\" he
\nconfirmed.<\/p>\n
Salim also maintained that Indonesia still has no
\naccreditation agency which is authorized to state the quality of
\ndiamond products.<\/p>\n
\"People still have mixed perceptions about the quality and the
\noriginality of diamonds. There should be a certification process
\nthat states the real quality of any diamond sold in the country,\"
\nSalim said.<\/p>\n
The absence of such an agency has placed local consumers in a
\nvery weak position as they have no idea about the quality of
\ndiamonds they buy. This has discouraged local people from buying
\ndiamonds, which affects the local diamond industry badly.<\/p>\n
Salim went on to say that Indonesia should learn more about
\nthe complicated marketing and distribution system for diamonds.<\/p>\n
In the past, the diamond trade was very simple. Now, however,
\nit involves various international agencies. Unfortunately, only a
\nfew local diamond manufacturers are familiar with the rules.<\/p>\n
History<\/p>\n
The diamond trade has been active since the 4th century B.C.
\nIndia was the major producer until the 18th century. Until the
\nmiddle ages, the Persian and the Arabs had the monopoly on
\ndiamond shipping and very few stones reached Europe. In the 13th
\nCentury, Venice became the largest Western commercial power and
\nalso the center of the diamond trade. Through the city of the
\nDodges, many diamonds came to Brudges in Belgium, which became a
\nfamous cutting center. The diamond industry later moved to
\nAntwerp.<\/p>\n
But, Antwerp faced a tough challenge from Amsterdam and
\nLondon, other prominent international diamond centers.<\/p>\n
Between the 18th and 19th century, the industry reached its
\npeak with the discovery of diamonds in Brazil, Australia and
\nSouth Africa. Since then the global trade of diamonds has become
\nvery complicated. It involves various agencies, including the
\nCentral Selling Organization which is owned by De Beers and
\ncontrols the market and supply of rough diamonds worldwide.
\nDiamond bourses, dealers and financial and accreditation
\ninstitutions actively taking part in the international diamond
\ntrade.<\/p>\n
Growing<\/p>\n
Budi Cahyadi, vice chairman of the Indonesian Goldsmiths and
\nJewelers Association, maintained that the local diamond and
\njeweler industry should tie itself closely to its counterparts
\noverseas if they want to grow.<\/p>\n
\"We have to enter the international market as soon as
\npossible. We need to understand the mechanisms of diamond and
\njewelry manufacturing and trade, how to distribute the jewelry
\nand the latest diamond know-how,\" Cahyadi said.<\/p>\n
In order to encourage the local diamond and jewelry industry,
\nIndonesia will cooperate with the Belgian diamond industry.<\/p>\n
Last Tuesday, an Antwerp Diamond Conference was organized
\njointly by the Belgian Diamond High Council, the Embassy of
\nBelgium, the Indonesian Diamond Institute and the Indonesian
\nGoldsmiths and Jewelers Association at the Jakarta Hilton
\nInternational hotel.<\/p>\n
The meeting, which was opened by Minister of Women's Roles
\nMien Sugandhi, was attended by hundreds of local and foreign
\ndiamond and jewelry manufacturers and designers.<\/p>\n
M. Van Den Abeelen of the Belgian Diamond High Council pointed
\nout that the conference was an important milestone for both
\nIndonesia and Belgium to improve their relations in the diamond
\nindustry.<\/p>\n
\"We have no intention of disturbing the local diamond
\nindustry. Instead, we really want to support Indonesia in
\nenhancing its industry,\" he assured.<\/p>\n
The Diamond High Council, he said, is able to share its
\nexpertise and provide the necessary training for local diamond
\nmanufacturers. The Council will continually promote Indonesian
\ndiamonds in the international forum, Van Den Abeelen added.<\/p>\n
During the meeting, the Council also provided information on
\nthe latest trend on diamond trade and processing technology,
\nincluding the harmonization of diamond grading standards and
\ndiamond cutting and shaping with lasers.<\/p>\n
Van Den Abeelen revealed that with the support of its
\ngovernment, Belgian diamond exports generated US$18 billion in
\nrevenue in l994 or 7 percent of total exports. There are
\ncurrently 1,500 diamond manufacturers and several diamond bourses
\nin Antwerp.<\/p>\n
\"It may be high time for the Indonesian government to fully
\nback up its diamond industry if it wants to go global,\" he
\nconcluded.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/diamond-industries-in-indonesia-belgium-to-improve-ties-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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