The Ministry of Industry (Kemenperin) stated that seven tile companies have gone bankrupt or closed, due to rising natural gas prices and the impact of massive ceramic imports from China.The head of the Ceramic and Glass Industry Development Working Group of the Ministry of Industry said that the local ceramic industry's competitiveness has been declining due to rising natural gas prices. Although it was successful before 2015, with high corporate competitiveness and even a utilization rate of 90%, it began to decline afterwards. Corporate competitiveness became very low, unable to compete on price, and the arrival of cheap imported products made the situation worse.The surge in tile imports flooded the domestic market, especially tiles from China, affecting seven tile industry companies and causing them to suspend production. Eventually, in 2016, the Ministry of Industry began encouraging international trade barriers through trade remedy measures, such as implementing Safeguard Import Duties (BMTP) and Anti-Dumping Import Duties (BMAD) to protect the domestic ceramic industry. Below is the list of seven tile companies that have ceased production: PT Indopenta Sakti Teguh, PT Indoagung Multiceramics Industry, PT Keramik Indonesia Assosiasi - Cileungsi, PT KIA Serpih Mas - Cileungsi, PT Ika Maestro Industri, PT Industri Keramik Kemenangan Jaya, PT Maha Keramindo Perkasa
The Indonesian Anti-Dumping Committee (KADI) recommended imposing BMAD on imported ceramic tiles originating from China, with a maximum tariff of 199.98%, to protect the domestic ceramic industry. The Institute for Development of Economics and Finance (INDEF) assessed that implementing the BMAD recommendation would have some negative impacts. The head of the Industrial, Trade and Investment Center said that if BMAD is implemented based on KADI's findings, the first impact will be trade diversion, with imports shifting to countries other than China. Many will shift to India and Vietnam, as they are the two largest exporters. The second impact is that the competitive market will become increasingly smaller, consumer choices will decrease, and ceramic prices will become more expensive. Due to the sharp increase in ceramic import prices, domestic producers will increase their profit margins by raising selling prices. In addition, the actual quantity of ceramics in the market will be smaller, and when domestic demand for ceramics increases, the prices consumers receive will be higher. Domestic producers will increase profits by raising selling prices because import ceramic prices have risen sharply. The third is that many industries will be affected, including retail, real estate, importers, freight forwarders, and logistics, which may increase unemployment. The fourth impact is the concern that China will retaliate. Retaliation is a retaliatory action taken by a country against a country that has harmed it. The possible scenario is that the Chinese side will retaliate against Indonesian products.
Previously, the head of the Ceramic and Glass Industry Development Working Group of the Ministry of Industry revealed that the performance problems of the country's ceramic industry have existed for a long time. The problem began in 2015 when natural gas prices started to rise. The increase in natural gas prices led to a decline in the performance of the ceramic industry, even reducing its competitiveness. Before 2015, competitiveness was high, with utilization rates even reaching 90%. The massive influx of imported ceramics has made domestic ceramic products increasingly inferior, as imported ceramics are cheaper. Cheap imported products made the situation worse, and Indonesian consumers remain price-sensitive. The Ministry of Industry finally began in 2016 to encourage international trade barriers through trade remedy measures, such as implementing Safeguard Import Duties (BMTP) and Anti-Dumping Import Duties (BMAD) to protect the domestic ceramic industry.
The Ministry of Industry (Kemenperin) stated that seven tile companies have gone bankrupt or closed, due to rising natural gas prices and the impact of massive ceramic imports from China.The head of the Ceramic and Glass Industry Development Working Group of the Ministry of Industry said that the local ceramic industry's competitiveness has been declining due to rising natural gas prices. Although it was successful before 2015, with high corporate competitiveness and even a utilization rate of 90%, it began to decline afterwards. Corporate competitiveness became very low, unable to compete on price, and the arrival of cheap imported products made the situation worse.The surge in tile imports flooded the domestic market, especially tiles from China, affecting seven tile industry companies and causing them to suspend production. Eventually, in 2016, the Ministry of Industry began encouraging international trade barriers through trade remedy measures, such as implementing Safeguard Import Duties (BMTP) and Anti-Dumping Import Duties (BMAD) to protect the domestic ceramic industry. Below is the list of seven tile companies that have ceased production: PT Indopenta Sakti Teguh, PT Indoagung Multiceramics Industry, PT Keramik Indonesia Assosiasi - Cileungsi, PT KIA Serpih Mas - Cileungsi, PT Ika Maestro Industri, PT Industri Keramik Kemenangan Jaya, PT Maha Keramindo Perkasa
The Indonesian Anti-Dumping Committee (KADI) recommended imposing BMAD on imported ceramic tiles originating from China, with a maximum tariff of 199.98%, to protect the domestic ceramic industry. The Institute for Development of Economics and Finance (INDEF) assessed that implementing the BMAD recommendation would have some negative impacts. The head of the Industrial, Trade and Investment Center said that if BMAD is implemented based on KADI's findings, the first impact will be trade diversion, with imports shifting to countries other than China. Many will shift to India and Vietnam, as they are the two largest exporters. The second impact is that the competitive market will become increasingly smaller, consumer choices will decrease, and ceramic prices will become more expensive. Due to the sharp increase in ceramic import prices, domestic producers will increase their profit margins by raising selling prices. In addition, the actual quantity of ceramics in the market will be smaller, and when domestic demand for ceramics increases, the prices consumers receive will be higher. Domestic producers will increase profits by raising selling prices because import ceramic prices have risen sharply. The third is that many industries will be affected, including retail, real estate, importers, freight forwarders, and logistics, which may increase unemployment. The fourth impact is the concern that China will retaliate. Retaliation is a retaliatory action taken by a country against a country that has harmed it. The possible scenario is that the Chinese side will retaliate against Indonesian products.
Previously, the head of the Ceramic and Glass Industry Development Working Group of the Ministry of Industry revealed that the performance problems of the country's ceramic industry have existed for a long time. The problem began in 2015 when natural gas prices started to rise. The increase in natural gas prices led to a decline in the performance of the ceramic industry, even reducing its competitiveness. Before 2015, competitiveness was high, with utilization rates even reaching 90%. The massive influx of imported ceramics has made domestic ceramic products increasingly inferior, as imported ceramics are cheaper. Cheap imported products made the situation worse, and Indonesian consumers remain price-sensitive. The Ministry of Industry finally began in 2016 to encourage international trade barriers through trade remedy measures, such as implementing Safeguard Import Duties (BMTP) and Anti-Dumping Import Duties (BMAD) to protect the domestic ceramic industry.
