Indonesia's ceramic industry recorded sales amounting to IDR 14 trillion (USD $1.4 billion) in the first six months of 2013. This implies a 27 percent increase compared to ceramic sales in the same period in 2012. The increase is particularly caused by higher sales prices in January and March 2013 which were introduced to mitigate higher gas and electricity tariffs as well as higher minimum wages. Generally, ceramic prices rose 10 to 15 percent. Ceramics sales volume in semester I-2013 increased to 190 million m² from 180 m² in 2012.
Chairman of the Indonesian Ceramic Industry Association (ASAKI), Elisa Sinaga, expects that the increase in the prices of ceramics will be fully felt in the second half of 2013. As such, revenues in the ceramics industry are expected to grow to IDR 16 trillion (USD $1.6 billion) in Semester II-2013.
Domestic demand for ceramics is growing continuously in Indonesia. About 80 to 85 percent of Indonesia's ceramics production is sold domestically, the remainder is exported. The top export destination countries are the United States, Australia, and ASEAN member states.
Indonesia was the world's sixth largest ceramics producer in 2012. In terms of ceramics consumption, the country is also placed within the world top ten ranking. In line with the country's growing economy, which is supported by domestic consumption (as domestic consumption accounts for about 60 percent of Indonesia's GDP), Indonesia's rising middle class spends more and more on products such as floor tiles, roofing tiles and sanitary goods.
Indonesia's Ceramics Industry 2009-2013:
|Revenue (IDR trillion)||13||17||17||24||30¹|
|Growth YoY (%)||-20||30||0||41||20¹|
¹ indicates a forecast
Production capacity in Indonesia is expected to grow to about 400 million m² at the end of 2013 from 365 million m² in 2012. One matter that is still hampering the domestic ceramics industry is the lack of sufficient gas supplies. Ceramics producers now actually prefer to open factories in Sumatra as this island is blessed with natural gas reserves and has more available (and cheaper) land than on Java, Indonesia's most populous island.