RI gears up to expand silk production

JAKARTA (JP): President Soeharto has instructed Minister of Industry Tunky Ariwibowo to look into the problems of the silk industry in a bid to make the country a major silk producer, Director General of Light Industries Firdaus Ali said yesterday.

Firdaus said during a visit to PT Jado Wanasutera's silk reeling factory in Sukabumi, West Java, that Indonesia has a strong comparative advantage in the development of natural silk.

"Moreover, the outlook of the international silk market is very promising," Firdaus added, citing Japan and South Korea as several of the major markets.

However, Jado Wanasutera's director, Soedijono, conceded that Indonesia has yet to tap its great potential in the silk industry.

"The government has not paid adequate attention to the development of the silk industry, including cocoon production technology," Soedijono noted.

PT Jado Wanasutera is an Indonesian-South Korean joint venture which develops silk in cooperation with local farmers. The company, which also operates the country's largest silk reeling plant in Sukabumi, acts as a development agent for hundreds of local farmers.

The company provides mulberry cuttings, cocoons and extension services to the farmers and buys their raw silk.

Jado Wanasutera's president, Soon Jong Kwon, sees silk production as an agro-industry which is quite suitable to meet Indonesia's needs.

"Natural silk development is not only labor intensive but also contributes to environment preservation," Soon said.

Advantage

According to him, Indonesia enjoys a strong comparative advantage in the silk industry not only because of its huge land resources but also due to the conducive climate which enables mulberry trees to be productive more than 15 years.

"Moreover, silk production is commercially viable only in countries with a per capita income of up to US$2,000," he said.

The industry, he said, is no longer competitive in such middle-income countries as South Korea and Taiwan.

"Therefore, Indonesia (with a per capita income of about $750) can be highly competitive in this industry," Soon added.

The problem, though, is that the industry requires government assistance, notably low-interest loans and extension services to farmers to improve farming technology.

"Jado Warehousing has been providing such assistance to the local farmers in Sukabumi, but our resources are limited," he said.

Soon said Indonesia's silk production is still very small, totaling about 140 tons last year, and the domestic batik garment industry therefore has to import more than three million meters of silk fabric a year.

South Sulawesi, Central and West Java are Indonesia's major silk producing areas.

China, he said, is the world's largest silk producer with about 72,000 tons produced a year, followed by India with 15,000 tons, Japan with 4,2500 tons and Brazil with 2,400 tons.(vin)