Gold producers encouraged to increase craftsmanship in jewelry designs

JAKARTA (JP): Indonesian jewelry makers should stop whining about the pittance they get for their products and make a better product.

"Most producers and designers in Indonesia often believe profits from the gold business can only be gained by adding weight with precious stones," the manager of the Indonesian chapter of the World Gold Council, Leo Hadi, said on Saturday.

Speaking at the opening of a one-day seminar on gold-crafting, Leo warned that the lack of quality and creativity of local designers may cause an increase in the imports of jewelry.

"The gold business is actually very profitable if an entrepreneur can optimally manage it," he said.

According to Leo, who is also chairman of the Association of Indonesian Gold Jewelry Manufacturers (APEPI), four factors determine the price of gold jewelry -- carat, weight, design and craftsmanship.

"Producers now can only survive by manipulating design and craftsmanship," Leo said.

He said most of the world's gold supply comes from South Africa which produces 600 tons of gold per year, about one-third of total world production, while Asia is currently the biggest market for gold, mainly because it has a long history and tradition of gold-crafting. Potential gold consumers in the region include Japan, Hong Kong, Taiwan, Thailand, Malaysia and Singapore.

Leo said that Indonesia produces about 90 tons of gold per year from its mines in West Java, Sumatra, Irian Jaya and Kalimantan.

An expert in gold-crafting, Daniela Invernizzi, told the seminar that entrepreneurs need to realize that designs are determined by consumers' desires.

Heart-shaped jewelry is now the best seller in the world. (10)