Plastic consumption rise 14.3% this year<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
After suffering in the doldrums during the economic crisis,
\nlocal plastics producers have enjoyed increased demand for the
\npast two years.<\/p>\n
A group of three plastics producer associations, INAplas,
\nrevealed that domestic plastics consumption this year had reached
\nthe pre-crisis level of 1.6 million tons.<\/p>\n
That was an 14.3 percent increase, from 1.4 million tons last
\nyear.<\/p>\n
In 1999, plastics consumption stood at 1.1 million tons, a
\nmild increase from 900,000 to 950,000 tons in 1998.<\/p>\n
INAplas president Didie W. Soewondho explained in Jakarta on
\nWednesday that the domestic plastics market had grown by 15
\npercent in the period 1999 to 2001.<\/p>\n
\"Over the past two years, the industry has been consolidating
\nitself to improve its performance,\" Didie was quoted by Antara as
\nsaying.<\/p>\n
Didie noted that the steady increase in national plastics
\nconsumption indicated that the domestic plastics market had
\nrecovered from the crisis.<\/p>\n
He described that during the height of the crisis in 1998,
\nIndonesian olefin and plastics industries were struck by a 35
\npercent to 40 percent decline in domestic consumption.<\/p>\n
Because of the sharp fall of consumption in 1998, many local
\nplastics producers slashed production by 45 percent to 50
\npercent.<\/p>\n
Before the crisis, domestic plastics consumption stood at
\naround 1.6 million ton per year.<\/p>\n
Besides increasing consumption in the domestic market, local
\nplastics producers also benefited from increased demand from the
\nexport market.<\/p>\n
Indonesia's plastics exports have been growing by 25 percent
\nper year.<\/p>\n
Local plastics producers export one-third of their output.<\/p>\n
Nevertheless, Didie explained that local producers would tap
\ndomestic more than export markets, as international demand for
\nplastics would ease because of the looming recession in the
\nUnited States.<\/p>\n
Didie, nevertheless, predicted that the international market
\nfor plastics and olefins would recover in the next two years to
\nthree years after the impact of the Sept. 11 terrorist attacks on
\nthe U.S. had eased off.<\/p>\n
As for the domestic market, Didie forecast that demand for
\nplastics would increase by six percent to seven percent next
\nyear.<\/p>\n
Nevertheless, some issues are clouding local plastics
\nproducers, including the rising price of raw materials at a time
\nof decreasing prices for products made from plastic, as well as
\ntighter competition following the implementation of free trade in
\nthe region.<\/p>\n
INAplas is a new association bringing together the Indonesian
\nPlastic Producers Association (Apindo), the Indonesian Plastic
\nRaw Materials Producers Association (AB Plastik), and the
\nIndonesian Plastic Producers Federation (Fiplasin).<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/plastic-consumption-rise-143-this-year-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}