This article is adapted from Disway.id

Growth in the Property Sector in Indonesia Drives High Demand for Granite. In Recent Years, Domestic Granite Demand Has Mostly Been Met Through Imports

Granite products from China have flooded the Indonesian market through various means. Data from the Indonesian Ceramic Industry Association (Asaki) shows that the national ceramic production capacity is actually 550 million square meters per year. Of that amount, 140-150 million square meters are B1A ceramics or granite. However, in reality, only about 50% of this capacity is utilized.

This situation is due to the influx of imported products from China, which is also indicated to involve unfair trade practices. These include a 14% tax subsidy from the Chinese government, alleged dumping practices, and the reduction of ceramic thickness.

To address this challenge, PT Superior Porcelain Sukses (SPS) is preparing to build a granite factory in Subang Regency, West Java. The factory, with a capacity of 14 million square meters per year, is set to begin operations in 2024. The groundbreaking ceremony for the factory took place on Friday, July 21, 2023.

Located in Kadawung, Paburan, Subang, the factory has a building area of 81,000 square meters and stands on 22 hectares of land.

Asaki welcomed the construction of the PT SPS granite factory. Andrea Petrina, Chairman of the Ceramic and Tile Division of Asaki, stated that the construction of the PT SPS granite factory could bring a multiplier effect to Indonesia's economy.

"This investment is part of the national ceramic industry's commitment to supporting the government's efforts in providing special gas prices," said Andrea, who attended the groundbreaking ceremony.

Equally important, PT SPS's investment supports the government's import substitution program.

"As we know, imported homogeneous tiles (granite) have flooded Indonesia. We hope that the import portfolio can be shifted to SPS products once this factory begins production, especially given its large production capacity for homogeneous tiles," she said.

The granite tiles produced by PT Superior Porcelain Sukses will be the second product of SPS Corporate in the building materials sector. Previously, SPS Corporate successfully operated a well-known lightweight brick industry in Indonesia, Blesscon.

"We hope this company can become one of the Top 3 in the granite tile industry, following in the footsteps of other companies within SPS Corporate," said Hendra Widodo, Production Director of PT Superior Porcelain Sukses.

The granite produced by PT Superior Porcelain Sukses will include homogeneous tiles and porcelain tiles, each with a production capacity of 7 million square meters per year, totaling 14 million square meters annually.

With such a large capacity, SPS Corporate hopes that the presence of the factory will absorb local labor, as it will require more than 600 workers.

So far, SPS Corporate has been a leader in several industries, ranking in the Top 3 in their respective fields, including paper, tissue, and lightweight bricks (Blesscon).

PT Superior Porcelain Sukses chose to establish the factory in Subang for several reasons. First, its proximity to gas access. Currently, 30% of ceramic production costs come from energy (gas) expenses. Additionally, other raw materials such as clay and feldspar can be sourced near Subang.

The new factory in Subang is actually the first plant of PT Superior Porcelain Sukses. Currently, they are preparing plans to build factories in other locations in the near future, a strategy often employed by other companies within SPS Corporate.