shortage in gas supply hampers expansion of ceramic industry.
Gas dealers ownedPGN).
The shortage led to a decline in production and hindered investment in the ceramic industry.
In January 2008, the price of crude oil exceeded the level of US $ per barrel, pushing up the price of basic materials and transportation costs.
The decline in production has led producers to fail to maintain a foothold in the international market.
Indonesian suppliers have lost their market in Australia and the United States in order to compete with suppliers from Malaysia, Vietnam and China.
Chairman of the Indonesian ceramic association for alternative energy invalidation (ASAKI)
AchmadWijaya said the shortage of gas supply in the ceramic industry began three years ago.
The shortage of natural gas supplies has led to a decline in productivity.
As crude oil prices began to soar, many producers sought to use alternative energy sources.
Some producers use coal, but most Indonesian coal has a calorific value of as low as 6,000 calories, much less than nine thousand calories of natural gas.
As a result, productivity is not as high as when gasoline is used.
The ceramic industry needs the support of stable gas supply.
Alternative energy sources such as coal are ineffective.
Royal dutons want to guarantee the supply of natural gas to the manufacturers of major ceramic manufacturers from the British Royal dutons & Wedgwoodplans to increase the investment in the ceramic industry by byaround US $62 million.
The new investment will be implemented in 2008.
Head of Investment Committee (BKPM)
Muhamad Lutfi said doltonsalready has invested $75 million in China and plans to increase its investment by about $26 million.
The foreign company hopes to transfer the factory from Europe to Indonesia.
Jusuf Kalla, vice president, expressed support for the UK company\'s plans and pledged to help seek gas fuel for the country\'s ceramic industry.
Royal president doulons and Anthony Wedgwood o\'reillysaid\'s additional investment will double the production capacity of his company from the current 12 million pieces per year of 6 million pieces.
Despite the current problems with gas supply, the company will continue to advance its plans, although implementation may be delayed until pgn guarantees gas supply.
In the past few years, the production capacity of China\'s ceramic industry has not increased.
Some investment projects have been delayed or canceled due to supply uncertainty.
According to the Ministry of Industry\'s agrochemical administration, production of all types of ceramic products has stagnated over the past four years.
In 2003, the production capacity of ceramic tiles reached 4,864,462 tons, and the production capacity remained unchanged until 2006.
See table below.
China\'s ceramic production has been relatively slow in the past few years.
Only a slight increase during that time.
In 2005, production even declined due to falling oil fuel prices (BBM)
This has resulted in an increase in production costs and weakened the purchasing power of the people.
China\'s ceramic production increased slightly in 2006.
The output of ceramic tableware increased from 53,332 tons in 2003 to 600 tons in 2004, 54,672 tons in 2005, and 55,765 tons in 2006.
The production of sanitary ceramics has also gradually increased, but the number is relatively small.
In 2003, the total production of sanitary ceramics was 51,840 tons, reaching 52,100 tons in 2004, 53,142 tons in 2005 and 54,205 tons in 2006.
Export of ceramic products, 2003-
2006 in the past two years, the country\'s exports of ceramic products have barely changed, from 557,718 tons in 2005 to 557,837 tons in 2006.
In 2003, production of heat-resistant ceramic materials, ceramic tableware and other ceramic products in the country showed a downward trend2006 period.
Production of ceramic tiles, sanitary ceramics and ceramic roof tiles rose slightly.
2007 of ceramic exports were lower than the target in the first half of 2007, and the country\'s ceramic exports fell by the target of $0. 11 billion, as production was well below the target of 0. 164 billion cubic meters, which was only 0. 12 billion cubic meters in that period.
Achmad theJanuary Widjaya, president of yassaki, said exit-
During June, the valuation for 2007 was $85 million, $25 million lower than the target.
ASAKI Qi attributed the failure to meet the target to a shortage of gasoline in the industry.
In addition, some buyers have turned to Malaysia, Vietnam and China because they have lost confidence in Indonesian suppliers, including quality suppliers.
Due to the problem of fuel supply, the quality of Indonesian ceramic products has declined.
The inability of the country\'s five major producers to meet export orders has led to penalties for foreign consumers.
Main products of four ceramic companies-
PT Mulia ceramics, PT Kia ceramics, PT RomanCeramic, PT Kobin (Kedaung Group)
Indonesia and Indonesia--aretableware.
In 2004, with the recovery of the real estate industry, especially the residential industry, the import of ceramic products began to increase significantly.
The revival of the real estate industry marks the beginning of the government\'s construction of 1 million low-cost apartments, which has led to an increasing demand for ceramic products.
With the stagnation of production, imports need to be expanded in order to meet the growing domestic demand.
Imports come mainly from China, where prices are competitive.
Tiles are the most imported.
In 2003, the total import of ceramic tiles was 56,698 tons, 146,456 tons in 2004 and 546 tons in 2006.
Imports of sanitary ceramics increased from 2,303 tons in 2003 to 7,336 tons in 2004.
Imports fell slightly to 6,405 tons in 2005, but rose again to 7,334 tons in 2006.
The import of other types of ceramic products such as heat-resistant products and ceramic tableware has not changed significantly.
Ceramic consumption in China\'s ceramic industry has been stagnant since 2003.
Production, exports and consumption even declined in 2005 as BBM prices rose.
The consumption of ceramic commodities in 2004 was estimated at 3,132,161 tons, up 8 year on year.
Growth of 7% over the previous year.
Consumption fell again. 2% in 2005.
Consumption increased by 8 in 2006.
6% with the improvement of economic conditions at the end of the year, the recovery of the real estate industry is marked.
Many of the major ceramic producers have managed to survive the shortage of natural gas supplies, rising prices of basic materials and a large number of cheap imports from China.
The main manufacturers of PT Mulia ceramics yingdazhi, PT SatyaRaya Keramindo Yingda and PT Asia Industri victory.
With the improvement of Indonesia\'s economic situation, especially the development of real estate and construction industry, Indonesia\'s ceramic industry still has good prospects.
Once the country has the largest natural gas reserves in the world, the problem of natural gas supply should be solved.
In addition, the lower key interest rates of Indonesian banks will promote the survival of the real estate and construction industries and contribute to the growth of the ceramic industry.
Indonesia\'s ceramic consumption forecast for 2007 is 3.
6 million tons, up to 3.
8 million tons in 2008.
See table below.