Low Demand Hits Indonesian Tile Sector
Muted demand in domestic market due to less than expected economic growth has hit Indonesian ceramic tile producer badly in the year 2016. Ceramic tile production in the country could only reach 353 million square meters, or about 59.83%of the total installed capacity of 590 million square meters per annum.
Slowdown was not only confined to tile segment of the industry. Tableware, roofing tile and sanitary ware segments were equally affected. The country produced 290 million tableware items, 120 million root tiles and 5.4 million sanitary wares.
Of the total production figure in 2016, about 87% were allocated to the domestic market, while the rest was exported to various countries in Asia, Europe and America.
Indonesia has competitive advantages in the ceramics industry, especially considering its abundant natural resources that could be used for raw materials of ceramics. However, despite being the most populated country in the region, Indonesian ceramic industry has been unable to realize the true potential. The country’s per capita tile consumption is relatively low compared to most of its Southeast Asian neighbours.
“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.” According to Indonesian Ceramic Industry Association.
Indonesia’s 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.