1. MARBLE INDUSTRY STILL ATTRACTIVE TO INVESTORS DUE TO THE AVAILABILITY OF BASIC MATERIALS.
Of the three new projects, only one is located in West Java, an area known as one of Indonesia's marble production centers. This project belongs to PT Sariposo Gemilang, and it is located in Serang, West Java. This project requires an investment commitment of Rp 11.25 billion, and it will have the capacity to produce up to 84,000 square meters of ornament marble per annum. Approved under the domestic investment (PMDN) scheme, PT Sariposo Gemilang's marble project will commence its commercial operations in 2001. The other two new projects belong to, respectively, PT Mestika Granimar and PT Bakrie Prima Moramo. The former's project is located m East Nusa Tenggara and the latter s in Southeast Sulawesi. With an investment commitment of Rp 2 billion, PT Mestika Granimar will have the capacity to produce up to 5,000 square meters of marble per annum. Meanwhile, PT Bakrie Prima Moramo's project requires an investment commitment of Rp 32.4 billion, and it will have the capacity to produce 36,000 square meters of marble blocks and 450,000 square meters of slabs/tiles per annum. The two companies are scheduled to commence their commercial operations in, respectively, 2000 and 1999.
As for the expansion projects, the largest, one belongs to PT Citatah and it is located in the West Java district of bandung. Through this expansion project, which is worth Rp 432.9 billion, PT Citatah will increase its annual marble production capacity by 480,000 square meters. If this expansion project is implemented as scheduled, it will commence its commercial operations in 1998 and PT Citatah's total production capacity will reach 1.32 million square meters per annum. Currently, the company has the capacity to produce 700,000 square meters of natural marble products and 140,000 square meters of synthetic marble products per annum. PT Pusaka Marmer Indahraya, a medium-small scale marble producer with an annual production capacity of 40,000 square meters, is currently expanding it by 480,000 square meters to 520,000 square meters with an investment commitment of Rp 28.6 billion. This expansion project is scheduled to be completed in 1998.
Table - 1
New and expansion projects in marble industry approved by vestment Coordinating Board in 1996 - August 1997
Name of company Location Status New projects: - Mestika Granimar North-central PMDN Alamindo, PT Timor, East Nusa Tenggara - Bakrie Prima Kendari, PMDN Moramo, PT Southeast Sulawesi - Sariposo Poso & Serang, PMDN Gemilang, PT West Java Expansion projects: - Citatah, PT Pangkep & Karawang, West Java - Pusaka Marmer Bandung, PMDN Indahraya, PT West Java - Marindatara Bandung, PMDN Raya, PT West Java Name of company Prod. capacity Investment ([M.sup.2]/year) commitment (Rp'mill.) New projects: - Mestika Granimar - Marble 2,000 Alamindo, PT 5,000 - Bakrie Prima - Marble block 32,414 Moramo, PT 36,000 - Slabs 450,000 - Sariposo - Ornamen 11,253 Gemilang, PT marble 84,000 Expansion projects: - Citatah, PT - Marble 432,869 80,O00 - Pusaka Marmer - Marble tile 28,600 Indahraya, PT 480,000 - Marindatara - Marble Raya, PT 1,120,000 -- Name of company Date of Planned BKPM's commen- approval cement of operations New projects: - Mestika Granimar 1997 2000 Alamindo, PT - Bakrie Prima 1996 1999 Moramo, PT - Sariposo 1996 2001 Gemilang, PT Expansion projects: - Citatah, PT 1996 1998 - Pusaka Marmer 1996 1998 Indahraya, PT - Marindatara Raya, PT 1996 1998
Source: Investment Coordinating Board/Data Consult
West Java Indonesia's Marble Production Center
Due to its natural resources, the district of Bandung is home to most marble producers in Indonesia. They are located in the kecamatans of Padalarang and of Citatah. Indonesia's largest marble producer, namely PT Citatah, is also located in the district of Bandung. Two large scale marble producers, namely PT Granito Serasi Jaya and PT Inti Nusa Selareksa, are ocated in Bogor, West Java. They have annual production capacities of, respectively, 300,000 square meters and 288,000 square meters. However, these two companies produce natural granite in addition to marble.
The other marble production centers in Indonesia are the East Java districts of Tulungagung and of Pasuruan. Among the marble producers located in these areas is PT Mercu Gramaron, which is located in the district of Pasuruan and has the capacity to produce 400,000 square meters of marine and natural granite per annum. In the province of Lampung, there are three large-scale marble producers and they are as follows: PT Marmer (360,000 square meters/annum), PT Pola Marmer Kencana (300,000 square meters/annum), and PT Bangun Lampung Jaya (219,000 square meters/annum). These three companies produce only marble and marine products; they do not produce granite and onyx.
Currently, Indonesia's marble industry has a total production capacity of 4.65 million square meters/annum. According to data from the Department of Industry and Trade, this figure includes the capacity to. produce granite and onyx among certain marble producers. However, the production capacities of companies which produce only granite and/or onyx are not included in the calculations of the total production capacity of Indonesia's marble industry.
Table - 2 Production capacity of marble industry, by producer Producer Location Status - Citatah, PT Bandung, PMDN West Java - Bandung Marmer, PT Bandung:, West Java PMDN - Java Stone Perkasa, PT Bandung, West Java PMDN - Kurnia Marble, PT Bandung, Non- West Java PMDN/PMA - Pusaka Marmer Bandung, PMDN Indahraya, PT West Java - Indokawa Rokline, PT Bandung, West Java Non-PMDN/PMA - Granito Serasi Bogor, PMDN Jaya, PT West Java - Inti Nusa Selareksa, Bogor, PMDN PT West Java - Marmer Indah Bekasi, PMDN Saranagraha, PT West Java - Mercu Gramaron, PT Pasuruan, PMDN West Java - Industri Marmer Tulungagung, Non- Indonesia Tulung- East Java PMDN/PMA agung, PT - Sumbertama Jaya Tulungagung, PMDN Asri, PT East Java - Gramer, PT South Lampung, Non- Lampung PMDN/PMA - Pola Marmer South Lampung, Non- Kencana, PT Lampung PMDN/PMA - Bangun Lampung Padang Cermin, Non- Jaya, PT Lampung PMDN/PMA Others Producer Product Capacity ([M.sup.2]/annum) - Citatah, PT Natural marble 700,000 Synthetic marble 140,000 - Bandung Marmer, PT Natural marble 120,000 - Java Stone Perkasa, PT Marble/granite 100,000 - Kurnia Marble, PT Marble 40,000 - Pusaka Marmer Tile marble 40,000 Indahraya, PT - Indokawa Rokline, PT Natural marble 36,000 - Granito Serasi Granite/Marmer/Onyx 300,000 Jaya, PT - Inti Nusa Selareksa, Marble & granite 288,000 PT - Marmer Indah Marble & granite 36,000 Saranagraha, PT - Mercu Gramaron, PT Marble & granite 400,000 - Industri Marmer Slabs marble 16,000 Indonesia Tulung- agung, PT - Sumbertama Jaya Natural marble 16,500 Asri, PT - Gramer, PT Marble floor tile 360,000 - Pola Marmer Marble 300,000 Kencana, PT - Bangun Lampung Natural marble 210,000 Jaya, PT Others 1,527,500 4,650,000
Source: Department of Industry and Trade/Data Consult
Despite competition from locally produced granito tiles, which are gaining popularity among developers of luxury houses and high-rise buildings, marble producers have managed to keep increasing their output. This is so not only because of increases in export demand but also because marble and marble products have a special market segment which can be penetrated only by granite or imported natural marble.
Table - 3 Indonesia's marble production, 1992 -1996 Year Volume Growth ([M.sup.2]) (%) 1992 1,727,857 - 1993 1,975,000 14.3 1994 2,030,000 2.8 1995 2,300,000 13.3 1996(*) 2,530,000 10.0
(*) Tentative figure
Source: Directorate General of Mines of the Department of Industry and Trade/Data Consult
In 1995, Indonesia's marble industry operated at only 48.7% of its capacity level, turning out 2.3 million square meters of marble products, despite the fact that certain large-scale marble producers, e.g. PT Citatah, operated at nearly full capacity and, as a result, have made plans on expanding their production capacities. One reason for this is that, as has been mentioned earlier, the figures on the production capacities of several marble producers include granite and onyx production capacities as well. Another reason is that data on the output of many small-scale marble producers were not collected.
However, many medium-small scale marble producers -- especially those located far away from their marketing areas -- have not been utilizing their production capacities to the optimum. They are mostly located in Lampung and other areas outside of Java. On the other hand, the largest consumers of marble ]products -- namely high-rise building projects and luxury housing projects -- are mostly located in major cities in Java, especially in the area of Jabotabek (Jakarta-Bogor-Tangerang-Bekasi), and they receive marble supplies from producers located in West Java.
Table - 4
Output and production capacity utilization of marble industry in 1995, by producer
Producers Output Prod. capacity ([M.sup.2]) utilization (%) - Bandung Manner, PT 160,000 133.3 - Bangun Lampung Jaya, PT 72,221 34.4 - Citatah, PT 632,000 90.3 - Gramer, PT 253,127 70.3 - Granito Serasi Jaya, PT 50,865 17.0 - Indokawa Rokline, PT 25,200 70.0 - Industri Marmer Indonesia 20,172 56.0 Tulungagung, PT - Inti Nusa Selareksa, PT 17,500 6.1 - Javastone Perkasa, PT 68,320 68.3 - Kurnia Marble, PT 37,000 92.5 - Marmer Indah Saranagraha, PT 5,400 15.0 - Mercu Gramaron, PT 225,000 56.3 - Pola Marmer Kencana, PT 37,358 12.5 - Pusaka Marmer Indah Raya, PT 19,000 47.5 - Sumbertama Jaya Asri, PT 13,650 82.7 - Others 663,187 -- Total 2,300,000 48.7
Source: Department of Industry and Trade/Data Consult
Over the period of 1992-1996, Indonesia's marble exports have showed rapid annual growth. In 1996, the volume of such exports reached 17,000 tons, up 104.6% from 8.3 thousand tons in 1995, and the value reached US$ 9 million, up 42.2% from US$ 6.3 million.
Table - 5 Indonesia's marble exports, 1992 1996 Year Volume Value (tons) (US$' 000) 1992 4,145 3,015 1993 7,764 5,438 1994 8,091 6,311 1995 8,301 6,303 1996 16,981 8,965
Source: CBS/Data Consult
Of the different types of marble, the most exported has been tiles & similar articles of marble. In 1996, some 9.5 thousand tons of tiles & similar articles of marble (worth US$ 7.2 million) was exported, which accounted for 55.8% of the total volume of Indonesia's marble exports for the same year. In terms of value, tiles & similar articles of marble accounted for 80.5 % of Indonesia s total marble exports in 1996.
Table - 6 Indonesia's 1996 marble exports, by type Type of marble Volume Value (tone) (US$ '000) - Tiles & similar articles 9,476 7,220 of marbles - Marble, Travertine and A/abaster 206 68 - Other Marble, Travertine 7,300 1,677 and Alabaster Total 16,981 8,965
Source: CBS/Data Consult
In Asia, Malaysia, Taiwan, Japan, and Singapore have been the most important importers of marble from Indonesia. In 1996, for example, Malaysia was the largest destination for Indonesian marble, importing 3.5 thousand tons of marble from Indonesia or 20% of the latter's total marble exports. Outside of Asia, the United States is the most important destination for Indonesian marble. In 1996, this country imported 1.8 thousand tons of marble worth US$ 1.6 million from Indonesia.
Table - 7
Indonesia's 1996 marble exports, by country of destination
Country of Volume Value destination (tons) (US$ '000) Malaysia 3,523 2,448 Taiwan 2,022 1,323 U. S. A 1,763 1,562 Japan 1,536 1,107 Singapore 711 640 Australia 745 609 Others 6,681 1,276 Total 16,981 8,965
Source: Department of Industry and Trade/Data Consult3
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|Comment:||1. MARBLE INDUSTRY STILL ATTRACTIVE TO INVESTORS DUE TO THE AVAILABILITY OF BASIC MATERIALS.|
|Publication:||Indonesian Commercial Newsletter|
|Date:||Oct 13, 1997|
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