Increasing exports, the perfect choice for the chemical industry
Increasing exports, the perfect choice for the chemical industry
The economic crisis continues, yet the chemical industry is surviving. A 12.9 percent increase of exported products in 1998, compared to 1997, can be used as a parameter of how it has survived, as well as how it has proved a careful solution made oriental in increasing exports. Organic chemistry and agrochemistry export performances are quite good despite a difficult economic and national stability condition, said Gatot Ibnu Santosa, Director General of Chemical Industry and Forestry at the Ministry of Industry and Trade.
Moreover, the chemical industry is decreasing its dependency to imported raw materials. Compared to previous years, 1998 imports of organic and agrochemistry decreased to 35 percent to 41 percent. This was caused by a depreciation of the rupiah, which has made imported materials very expensive, besides the plunge of local consumption due to the people's low buying ability.
It can be said that those steps show the industry's commitment to concentrate more on natural resources, in addition to utilizing infra and supra structures owned by Indonesia. In this way, it is our hope that this industry can give a contribution in increasing the country's foreign exchange income.
"Therefore, to accomplish the mission, we must maximize our premium product," he said.
Based on the above facts, and utilization of the available capacity, which is about 64 percent to 85 percent principally, the national chemical industry is ready to welcome the globalization era.
Furthermore, there is no doubt of the competency of the competitive ability and technology proficiency of the agrochemistry industry's inorganic subsector. "Especially for this subsector, the average utilization of the factory is reaching 70 percent," said Gatot enthusiastically.
To support this readiness, all parties need to believe in the steps taken either in policy or technical skill in order to face any obstacles, such as difficulty in opening letters of credit for many national entrepreneurs; in getting containers; high capital interest; transportation safety from factory to port; and decreased local consumption.
An accurate formula is needed to anticipate those problems. "We are trying to eliminate those obstacles, or at least to lesson them," said Gatot.
He further confirmed that those steps are taken in line with the good prospects of the chemical industry, such as olefin and aromatic in the petrochemical industry; olechemical, which is mostly used in detergent, pharmacy and plasticizer; and in the cement, glass, ceramic and pulp and paper industries. The most important thing is that planning the premium product of each subsector should begin now.
Also, Gatot reminded all entrepreneurs in this industry to be consistent and to be cost efficient as well as environment- oriented. "This call is needed, especially during the crisis," he said. In that way, it is believed that in the future, this industry will grow by leaps and bounds.