{
    "success": true,
    "data": {
        "id": 1028696,
        "msgid": "kaolin-industry-faces-bankruptcy-1447893297",
        "date": "1996-11-29 00:00:00",
        "title": "Kaolin industry faces bankruptcy",
        "author": null,
        "source": "JP",
        "tags": null,
        "topic": null,
        "summary": "Kaolin industry faces bankruptcy JAKARTA (JP): Kaolin producers in Bangka and Belitung, South Sumatra, are on the verge of bankruptcy because the mineral's price has slumped domestically, the kaolin association said yesterday. The chairman of the Indonesian Association of Kaolin Industry, Darkui Bunawan, said in Tanjung Pandan, Belitung, yesterday that producers had been forced to slash their prices because domestic demand had fallen 25 percent.",
        "content": "<p>Kaolin industry faces bankruptcy<\/p>\n<p>JAKARTA (JP): Kaolin producers in Bangka and Belitung, South<br>\nSumatra, are on the verge of bankruptcy because the mineral's<br>\nprice has slumped domestically, the kaolin association said<br>\nyesterday.<\/p>\n<p>The chairman of the Indonesian Association of Kaolin Industry,<br>\nDarkui Bunawan, said in Tanjung Pandan, Belitung, yesterday that<br>\nproducers had been forced to slash their prices because domestic<br>\ndemand had fallen 25 percent.<\/p>\n<p>He said the kaolin price had dropped 23.5 percent to between<br>\nRp 130 (US$0.056) and Rp 140 a kilogram since 1993 and 1994 when<br>\nit was around Rp 170 a kg.<\/p>\n<p>\"Despite the slumping price, their production costs have<br>\nincreased steadily mainly because of rising fuel and labor<br>\ncosts,\" he was quoted by Antara as saying.<\/p>\n<p>Hartono, a director of PT Bintang Puspita Bumi Dwipa, a kaolin<br>\nproducer in Belitung, said the current market price gave<br>\nproducers a margin between Rp 30 and Rp 40 a kg.<\/p>\n<p>Belitung regency data shows that the 17 kaolin industrialists<br>\non the island in 1995 produced about 366,950 tons of kaolin, only<br>\n50 percent of their installed capacity.<\/p>\n<p>Julius, the production director of kaolin producer CV Bumi<br>\nSentosa, said the impact of falling prices had been exacerbated<br>\nby a price war among producers.<\/p>\n<p>The weakening domestic demand is caused by the growing use of<br>\nsubstitutes such as calcium carbonate, he said.<\/p>\n<p>Tjiwi Kimia, a large paper producer which was once a major<br>\nkaolin user, has turned to calcium carbonate to whiten its paper<br>\nproducts.<\/p>\n<p>Wylit Marsudin, a marketing manager of PT Intialam Buana Raya,<br>\nsaid kaolin exports accounted for only 25 percent of Belitung's<br>\ntotal output.<\/p>\n<p>Kaolin is mainly exported to Japan, Taiwan, Thailand, Malaysia<br>\nand the Philippines for $86 a ton, he said. (bnt)<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/kaolin-industry-faces-bankruptcy-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}