Incredible Imported Ceramic Inventions, This is Minister Response

INDUSTRY.co.id - Jakarta, The national ceramics industry was again hit by a new problem, in the form of seepage of imported ceramic products, especially from China which began gradually shifting local products from consumers.

Moreover, China is now trying to halt its economic growth, so in itself the demand for local ceramic products should be contracted. As a result, the Asian market was also the target of its excess supply including Indonesia.

In response, Minister of Industry of Airlangga Hartarto considered that basically has happened since long when there is free trade agreement with China.

"Indeed, since the free trade agreement with China has been running (import), so imports soared," said Airlangga in Jakarta (18/05/2018).

He explained if the import conditions are actually dangerous for the domestic ceramic industry then it will provide Anti Dumping Import Duty (BMAD)

"If there is injury we love BMAD for the country," he continued.

Meanwhile, Chairman of the Association of Indonesian Ceramic Industries Association (Asaki), Elisa Sinaga, said that domestic ceramic production is difficult to compete with imported products from China. This is due to the onslaught of imports when the import duty tariff is lowered from 20% to 5%.

Elisa said that the government is still not strict to regulate the control of imported ceramics. "Once import duties are reduced, Imports may grow up to 40%," Elisha said.

According to Elisa, the government should be able to control the import of ceramics imported into Indonesia. Control of imported ceramics at this time felt not tight.

As is known, the import of ceramic products to Indonesia continues to increase with an average growth rate of 27% every year.

Based on Asaki's note, most imported ceramic products have homogenous or granite tile types whose imports make up twice the total domestic homogenous tile production.

However, for ordinary tile ceramics, said Elisa, domestic producers still dominate the domestic market share.

According to Elisa, the current condition of the Indonesian ceramics market in general is still decreasing. Although there is a possibility of increased demand, but a lot of filling is China's imported products.

Elisa said the Asean China Free Trade Agreement (ACFTA) harms the local ceramics industry. In the past, when the agreement has not been implemented, China's ceramic duty to Indonesia is about 20%.

"At that time, the import of ceramics rose by 20% -26% per year, now the import duty is 5%," he said.

So Elisa said, very, it is possible post-import duty will have a higher import impact. While the increase in domestic demand is not taken by local but by import.

With the start of the property sector, Asaki expects the ceramics business to grow 10% in 2018.