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.