Silver industry in Bali facing trying period
Silver industry in Bali facing trying period
DENPASAR, Bali (Antara): In addition to its elaborate gold
jewelry, gold-thread textiles, garments, wooden and bamboo
handicrafts, Bali is also well-known for its silver products.
Silver items are usually produced by both professional
silversmiths as well as amateur craftsmen in Celuk village in
Gianyar.
Before the crisis, silver handicrafts were one of the major
exports of the island.
According to Ketut Gde Mendra, head of the Trade and Industry
Ministry's office in Bali, between January and November 2000,
Bali earned US$22.6 million, or an increase of 4.78 percent from
the same period in the previous year, from the export of silver
jewelry and household items to Japan, Taiwan, the United States
and Europe.
However, the silver industry today faces a number of
obstacles, including a shortage of capital, insufficient
marketing and the burden of paying commissions to travel agencies
and tourist guides.
The decrease in the number of visitors due to the uncertain
social and political condition here has badly affected the
industry, said I Nyoman Mundita, the vice chairman of the silver
producers' association.
The traditional trade system of silver products is usually a
collaboration between producers and travel agencies or tour
guides.
Mundita explained that for the past few weeks, his gallery,
Mundita Gallery, only received a small number of visitors.
This current situation is very discouraging. The problem
worsens when the value of rupiah plunges against US dollar.
Nyoman Mundita admitted that the quality of Bali's silver
products are still far behind those produced in Thailand and
India.
Traditional methods of manufacturing has only enabled Balinese
silversmiths to produce between five and nine pieces a day.
"Silversmiths in Thailand and India have long used hi-tech
equipment to produce silver products," he said.
They are able to produce around 1000 pieces of jewelry and
other items a day, Nyoman said.
But, he urged other fellow silver producers to remain
optimistic. Nyoman said Bali's silver still attracts
international buyers because of its exquisite designs.
He said the majority of silver producers have to deduct about 45
percent to 60 percent of their revenue as commission for travel
guides and travel agencies.
"We should find a solution to this problem, otherwise small
and medium-sized silver producers will have to halt their
businesses," commented I Nyoman Patra, chairman of the
association.
He said all parties in the silver industry as well as in the
tourist industry must work hand in hand to help the silver
industry grow.