Ceramic producers demand govt help
Ceramic producers demand govt help
The Jakarta Post, Jakarta
Local ceramics producers are crying out for government help in
facing an influx of cheaper Chinese-made products, which they say
are threatening their survival.
Many local producers have either gone bankrupt or cut their
workforce due to poor sales as a result of the flood of Chinese-
made products, the Indonesian Ceramics Association (Asaki) said.
It warned that more companies could experience the same fate
unless the government did something to help.
"About three ceramics firms have closed down over the past two
months while many others have temporarily laid off workers,"
Ahmad Wijaya, vice chairman of the association, told The Jakarta
Post over the weekend.
The association has about 60 members.
He said the country's ceramics factories, which have a
combined production capacity of 200 million square meters of
ceramics every year, are now operating at between 50 percent and
70 percent of capacity.
Ahmad said local producers were still puzzled as to why
imported Chinese ceramics were able to be sold cheaper than local
products on the Indonesian market.
"It is hard to belief as the importers must pay the shipping
costs to bring the Chinese products to the local market. But,
this is the reality that we are facing now," he said.
Ahmad said the association had often complained about the
problem to the Ministry of Industry and Trade, but it was still
waiting for action.
One of the solutions proposed by the association is that the
current 10 percent import tariffs on the two main raw materials
for ceramic products -- glaze and feldspar -- be eliminated.
Glaze and feldspar are substances used as coatings to give
ceramic products their glossy appearance. Indonesia imports these
materials from India, Italy, France and a number of other
European countries.
"We want the government to eliminate the tariffs on these two
materials so that our products can compete with the imported
products," he said.
The association has also called for the removal of luxury tax
on sanitary ceramic products, including toilet bowls and bathroom
sinks. The tax on these now stands at 25 percent.
The association also blasted the government's approval of
state gas distribution company PT PGN's plan to raise the price
of gas to US$2.5 per million British thermal units (MMBTU) next
month, up from the current $2.3 per MMBTU.
It said the price increase would raise its members' production
costs by 15 percent, and aggravate their difficulties.
"We aren't asking for subsidized gas from the government. We
just want the plan to be delayed until conditions get better," he
said.