Kaolin prospects are bright

JAKARTA (JP): The Indonesian Association of Kaolin Industry (Askabel) denied that the kaolin industry in Belitung, South Sumatra, is facing bankruptcy, saying that it still holds a bright prospect in the future.

"The kaolin price is stable. The local price is between Rp 160 (US$0.68) and Rp 240 a kilogram, depending on the product's quality," Rachman Hakim, chairman of the Askabel, said yesterday.

Askabel, which claims to be the official association of kaolin industry in Belitung and has 12 member companies, issued a statement denying Antara's story, which was quoted by The Jakarta Post last week.

The story quoted Darkui Bunawan, who claimed to be chairman of the kaolin industry association in Belitung, as saying that Belitung's kaolin producers were on the verge of bankruptcy because of declining prices and increasing production costs.

He said that the kaolin price had dropped by 23.5 percent to between Rp 130 and Rp 140 a kilogram.

Rachman said that on the international market the kaolin price was between $85 and $145 per ton, depending on the quality.

"If there is any kaolin producer complaining about the declining price, it must be because of low quality and poor management," he said. (bnt)