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Govt to cut gas price for ceramics industry: Minister
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A worker works at a ceramics factory owned by firm PT Arwana Citramulia in Serang, Banten. (Antara/Rosa Panggabean)
T
he government is set to lower the price of gas for the ceramics industry—lower than US$6 per million British thermal units (mmbtu)—this year as mandated by Presidential Regulation No. 40/2016 on gas prices.
The Industry Ministry has given priority to the ceramics sector for the gas price cut as it is one of the fastest growing industries [in the country], said Industry Minister Airlangga Hartarto in a statement.
“The national ceramics industry has been performing well with sales growing by 10 to 15 percent with a volume of 385 to 402 million square meters [sqm],” he said during the launching of a new ceramic firm owned by publicly listed PT Arwana Citramulia in Mojokerto, East Java, on Monday.
(Read also: Bird’s eye chili prices hits record high amid rainy season)
“The ceramics sector is one of our prominent industries that has been supporting national growth for the past 25 years,” he added.
The sector still had much room to grow with only 60 percent or 350 million sqm of ceramic products being produced in 2016 from the actual potential production capacity of 580 million sqm, the minister added.
Out of the 350-million-sqm of tiles, tableware, sanitary and roof tiles produced, 87 percent were sold in local markets.
“The ceramics industry is a good sector for the long term with local demand continuing to grow accordingly with the increasing development of property and real estate,” he added. (bbn)
