Ceramic Exports Fall 30%

Ceramic exports are expected to fall 20-30 percent in the first half of this year, compared to the previous year.

"Exports go down, especially to Europe and Australia," says Secretary General of the Indonesian Ceramic Industries Association (or known) Elisa Sinaga in Jakarta, Tuesday, June 30, 2009.

Ceramic exports reached 20 percent of national production average of Rp 11 trillion per year. But in 2008 decreased to Rp 9 trillion - Rp 10 trillion and this year is expected to drop to Rp 7 trillion.

However, demand for ceramic products in the domestic market is still well judged. Fortunately the local market is still good but unfortunately had to compete with imported products. Indonesian exports of ceramic products rank second after China.

According to Elisa, exports fell because the majority of raw materials and goods imported supporters are still using the product. "For example, ceramic paint raw materials are still imported 90 percent," he said.

While supporters of such goods where ceramics are also burning still supplied from China.

Another problem, the purchase of raw material gas which still uses the U.S. dollar. "We buy gas in dollars, but sell the goods with the rupiah," he said. In fact, as much as 30 percent of production costs are allocated for the procurement of gas.

Exchange differences up to 40 percent will contribute significantly to the price increase so ceramic products. "For this issue (gas supply) there should be intervention from the government, because PGN can not decide alone," he said.