Glass Sheet Association Urges the Government to Lower Gas Prices And Reduce Glass Imports from Malaysia

INDUSTRY.co.id - Jakarta, The flood of imported products and the still high price of industrial gas in the country has brought the national glass industry in the horns.

Because, until now the national glass industry is still not able to compete with products from competing countries.

Chairman of the Association of Glass Sheet and Safety (AKLP) Yustinus Gunawan said, the national sheet glass industry is getting on the edge, and is not growing.

"The price of industrial gas is still too high, the onslaught of imports continues to rise, and the weakening of the rupiah that has not been able to encourage exports to make this industry more immobile," said Justinus when contacted Industry.co.id in Jakarta, Monday (5/28/2018 ).

He added, since the issuance of Presidential Regulation No. 40 of 2016 until now the glass industry still has not felt the decline in gas prices that have been promised.

In fact, he continued, the decline in industrial gas prices could almost deindustrialize which until now continues in the country.

"As an illustration, the price of industrial gas in West Java to date is still USD 9.1 per MMBTU, and in East Java USD 8.2 per MMBTU," said Justin.

No less precarious with the price of gas, flood of imported products, especially from Malaysia to make the glass industry national sheet stagnant.

Justin has made it clear that over the past three years, demand for domestic sheet glass has been steadily increasing. As an illustration, by 2015 the needs of domestic sheet glass to reach 675,000 tons, in 2016 rose to 710,000 tons, and in 2017 reached 745,000 tons.

However, he added, the increase in demand for domestic sheet glass followed by the increase of imported products entering Indonesia.

"In 2015 imports increased by 2.3% to 15,400 tons, by 2016 by 4.4% to 31,000 tons, while in 2017 to 95,300 tons or up to 12.8%," said Justin.

Furthermore, he said, in 2017 imports from Malaysia by 25%, Cihina 73.5%, and other countries 1.5%. Whereas in 2016, imports from Malaysia 0%, China 96.5%, and other countries 3.5%. While in 2015, Malaysia imports only 2%, China 90.9%, and other countries 7.1%.

"It should be noted that imports from Malaysia are the product of two Chinese sheet glass investment companies in Malaysia," he said.

To reduce the flood of imported products, AKLP together with the Ministry of Industry are formulating the certification of Indonesian National Standard (SNI) for insulated glass products.

The insulating glass is laminated glass to absorb heat, reduce noise pollution, and avoid dew. This product is often used in multi-storey buildings, airports, music studios, and others.

The presence of SNI is believed to be able to stem imported products coming into the market. "In addition to protecting consumers, SNI aims to protect the domestic market from the invasion of imported products," he said.

In addition, the Sheet Glass Association also urged the government to implement its commitments related to the decline in gas prices as stated in Presidential Regulation No. 40 of 2016 which is still not felt for some industries.

"The government should immediately implement the Presidential Regulation to improve the competitiveness of the national sheet glass industry which is getting worse," said Justin.