Indonesia wants to be world’s fourth-largest ceramics producer

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The government aims to fully utilize the national production capacity of ceramics to make Indonesia the fourth-largest ceramics producer worldwide.
Last year, Indonesia’s ceramics production reached 350 million square meters, or only 60.3 percent of its estimated total capacity of 580 million square meters a year.
“Hence, we should increase it further. If we can reach 100 percent production capacity, we will be the world’s fourth-largest ceramics producer,” Industry Minister Airlangga Hartarto said on Thursday in a statement.
Of the total production figure in 2016, about 87 percent were allocated to the domestic market, while the rest was exported to various countries in Asia, Europe and America.
At that time, Indonesia produced 290 million tableware items, 120 million roof tiles and 5.4 million sanitary wares.
Airlangga said the country had competitive advantages in the ceramics industry, especially considering its abundant natural resources that could be used for raw materials of ceramics. Moreover, Indonesia’s ceramics consumption is still relatively low compared to its Southeast Asian neighbors.
“Now, we have to take strategic steps to boost the ceramics industry, by strengthening the industry’s structure, improving the quality of human resources, bringing technological innovations through research and development and developing the infrastructure,” Airlangga went on.
Hence, the Industry Ministry has proposed to make the ceramics industry one of priorities to get a lower industrial gas price, as it needs a long-term supply of gas so that it can see a production boost in the long run.
Questions & Answers
Q.What is the current ceramics production capacity utilisation in Indonesia?
What is the current ceramics production capacity utilisation in Indonesia?
Indonesia’s ceramics production last year reached 350 million square metres. This represents 60.3 percent of its estimated total capacity, which stands at 580 million square metres annually.
Q.Which markets did Indonesia's ceramics exports target in 2016?
Which markets did Indonesia's ceramics exports target in 2016?
In 2016, approximately 13 percent of Indonesia's total ceramics production was exported. These exports were shipped to various countries across Asia, Europe, and America.
Q.What competitive advantages does Indonesia have in its ceramics industry?
What competitive advantages does Indonesia have in its ceramics industry?
Indonesia possesses abundant natural resources that can be utilised as raw materials for ceramics production. Also, the country's ceramics consumption is currently low compared to other Southeast Asian nations, suggesting growth potential.
Q.What steps is the Industry Ministry proposing to boost the ceramics sector?
What steps is the Industry Ministry proposing to boost the ceramics sector?
The Ministry plans to strengthen the industry’s structure, improve human resource quality, introduce technological innovations through research and development, and develop necessary infrastructure. They have also proposed lower industrial gas prices for the sector.
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