JAKARTA - In the condition of the world economy which is being overshadowed by inflation, investment in the industrial sector is able to support the 35 percent import substitution that has been announced by the Ministry of Industry (Kemenperin). Imports of raw materials and intermediate goods, as well as rising energy prices can be the cause of the transmission of world inflation to Indonesia. Investment in the manufacturing industry supports the development of diversified domestic production, so that some imports can be substituted by domestic industries, one of which is in the ceramics industry.
In the first half of 2022, this sub-sector recorded four investments with a total of IDR 17.7 trillion. Three of these investments are spread across the Kendal, Batang and Mojokerto Industrial Estates with a total investment of IDR 3.2 trillion. Then the fourth was from PT Kohler Manufacturing Indonesia, which is a company from the United States with an initial investment value of IDR 14.5 trillion.
“This additional investment is expected to further strengthen the flow of the national sanitary ceramic supply chain which is also in line with the 35 percent import substitution program to optimize domestic production resources," said Industry Minister Agus Gumiwang Kartasasmita in Jakarta, Wednesday (10/8).
Currently, there are 10 sanitary ceramic industry companies in Indonesia, spread across Java and Sumatra. The utilization of national sanitary ceramics production throughout 2015 – 2018 tended to be stable at 89%, but had decreased in 2019 – 2020 to 59% due to decreased demand and the global economic slowdown due to the Covid-19 pandemic. In 2021, the utilization of this sub-sector will rise again to 62%. Meanwhile, the export performance of sanitary ceramics in the first semester of 2022 also showed an increase of 8.97% compared to the first semester of 2021.
Plt. The Director General of Chemical, Pharmaceutical and Textile Industries (IKFT) of the Ministry of Industry, Ignatius Warsito, who represented the Minister of Industry at the inauguration of the addition of a new factory for PT Kohler Manufacturing Indonesia in Cikarang, West Java, today (10/8) expressed his appreciation for the investment of IDR14.5 trillion. which is the company's largest investment in Indonesia. The facility has an installed production capacity of 1 million units with kitchen and bath products which have started production since January 2022 with a workforce requirement of 655 people. (LM)