1. Imports of toothpaste basic materials increase.
In the 1980's, exports of toothpaste averaged only US$ 1 million a year, up to US$ 1.7 million in the 1990s. In 19096 exports even reached US$ 14.23 million. In 1997, however, exports dropped to US$ 7.3 million as a result of an increase on the domestic market. In 1998, exports rose again to US$ 10.3 million.
The falling value of rupiah is no longer enough to boost exports in 1999-2001. and 2001. PT Unilever has dominated exports of toothpaste before new producer PT Miswak Utama succeeded in penetrating export market in Middle East with the brand name of "Miswak-F".
Market studies will be needed in order to expand exports of toothpaste especially to Africa where the market is potential.
Malaysia the largest country of destination
Exports of toothpaste have been made mainly to Malaysia and the Philippines. In 2000, exports to Malaysia totaled 2,980 tons or 39.4% of the country's total exports. The value of exports to Malaysia was US$ 5.18 million or 40.6% of the total exports. In 2003, exports to that country was 2,780 tons valued at US$ 5.02 million.
Exports to the Philippines surged from 35,3 tons valued at US$ 58,800 in 2000 to 7.040 tons valued at US$ 5.42 million in 2003 placing it the largest market of destination replacing Malaysia.
Exports to other countries were small. Exports to Japan were valued only at US$ 111 in 2001 up to US$ 11,459.
In addition to a number of Asian countries, toothpaste has been exported Africa, and Latin America. Exports to Nigeria totaled 1,320 tons valued at US$ 2.1 million in 2000 placing that country the second largest buyer of toothpaste from Indonesia. In the first 10 months of 2003, exports to Nigeria dropped to 791 tons valued at US$ 810,000. The most potential competitor is China.
Demand for toothpaste was not affected by the crisis and falling buying power of the people as the people have been better aware of health.
In 1998, production grew by 15% resulting in large stock, therefore, production in 1999, did not increase very significantly as consumption grew only slightly. However, according to the industry and trade ministry, the country's production of toothpaste grew by 4.9% annually--from 39,110 ton in 1999 to 46,928 tons in 2003 as against the country's installed capacity of 48,888 tons or a capacity utilization of 96%.
The investment coordinating board (BKPM) said that toothpaste industry is wide open for foreign and domestic direct investment. Among the major producers are PT Unilever Indonesia, PT Prodenta, PT Delident, PT Bintang Tujuh, PT Filma Utama Soap, PT Indonesia Dental Industrial, PT Million Industries Inc. Major brands include Pepsodent, Signal, Prodent, Bintang Tujuh, Colgate, Denta, Zendium, Million and Sensodine.
Toothpaste has been exported to more than 60 countries including African and Mideast countries.
Unilever remains dominant
The annual installed capacity of the country's toothpaste industry is 48,888 tons with PT Unilever as the largest producer accounting for 31,000 tons or 63.4% of the capacity. In 1965, the installed production capacity was recorded at 67,000 tons with PT Brushido Cemerlang Indonesia as the second largest in capacity. PT Brushido produces toothpaste with the brands of Formula and ABC Kids. Now, however only Formula is found in the market. According to data at the industry and trade ministry, there were 22 producers of toothpaste before the crisis hit the country in 1997. Some of them might have stopped producing toothpaste.
PT Unilever Indonesia is a foreign investment (PMA) company, a joint venture between Margarin Union from the Netherlands and Lever Brother from Britain. Now the company has three toothpaste factories--two in Surabaya and one in Jakarta. The company also produces cosmetics, shampoo, etc. Its popular brand for toothpaste is Pepsodent.
Imports of basic materials up
The main basic materials as active ingredient of toothpaste is aluminum hydroxide for which the country still is entirely dependent on import as it not yet produced locally. Based on the standard used by the industry and trade ministry, the active ingredient accounts for 40% of the materials that make up toothpaste. The percentage will determine the quality and prices of toothpaste. In the country the percentage is 25% on the average.
Imports of aluminum hydroxide have tended to increase--from 69,786 tons valued at US$ 14.6 million in 1995 to 104,042 tons valued at US$ 17.61 million in 2002.
Table--1 Indonesia's exports of toothpaste, 1999-2003 Year Volume Value (tons) (US$'000) 1999 7,781.8 11,201 2000 7,565.6 12,762 2001 7,255.6 10,304 2002 10,054.1 13,866 2003 13,524.6 17,550 Source: CBS Table--2 Exports of toothpaste by countries of destination 2003 (January-October) Country of Volume Value destination (tons) (US$'000) Philippine 7,041.2 5,417 Malaysia 2,778.0 5,019 Nigeria 790.6 810 Singapore 330 500 Vietnam 93.0 457.5 Kenya 299.1 475.8 China 138.9 396.6 Others 2,054 4,474 Total 13,525 17,550 Source: CBS Table--3 Indonesia's production of toothpaste,1999-2000 Year Volume Growth (tons) (%) 1999 39,110 -- 2000 42,532 8.7 2001 44,234 5.0 2002 45,561 2.9 2003 46,928 3.0 Source: Department of Industry and Trade/Data Consult Table--4 Several producers of toothpaste and production capacity, 2003 Producers Brand Location Prod. Capacity (tons) Uilever Indonesia Close Up Surabaya/Jakarta 31,000 Pepsodent Signal Brushindo Cemerlang Formula Jakarta -- Prodenta Indonesia Prodent Jakarta 3,000 Zwitsal Filma Utama Soap Colgate, Surabaya 2,940 Darlie Lionindojaya Ciptaden Jakarta 2,860 Denta Indonesia DI. Enzim Jakarta -- Zendium Kenrose Indonesia Sensodyne Jakarta -- Bintang Tujuh Bintang Tujuh Jakarta -- Delindent Chemical Delident, Holdent Tanggerang -- Source: Department of Industry and Trade/Data Consult Table--4 Imports of aluminum hydroxide, 1998-2002 Year Volume Value (tons) (US$'000) 1998 96,233 16,685 1999 91,718 17,954 2000 -- -- 2001 -- -- 2002 104,842 17,610 Source: CBS/Data Consult
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|Comment:||1. Imports of toothpaste basic materials increase.(Trade)|
|Publication:||Indonesian Commercial Newsletter|
|Date:||Sep 14, 2004|
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