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.