RI gears up to expand silk production

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)