This article is adapted from Kabar Bisnis

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

Seeing this opportunity, SPS Corporate, which currently operates several companies in East Java, has expanded to West Java. There, they have established a granite factory through PT Superior Porcelain Sukses (SPS).

The granite factory, with a capacity of 14 million square meters per year, is being built in Subang Regency, West Java. The groundbreaking ceremony took place on Friday, July 21, 2023, and the factory is targeted to begin operations in the second half of 2024.

Located in Kadawung, Paburan, Subang, the factory has a building area of 81,000 square meters and stands on 22 hectares of land. The presence of the granite factory is also expected to absorb local labor, as it will require more than 600 workers.

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, in Surabaya on Sunday (23/7/2023).

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). 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. Homogeneous tiles are denser, harder, and have fewer pores, making them more moisture-resistant and stain-resistant.

The Indonesian Ceramic Industry Association (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 also part of the national ceramic industry's commitment to supporting the government's efforts in providing special gas prices," said Andrea.

Equally important, she added, PT SPS's investment supports the government's import substitution program. "As we know, imported homogeneous tiles 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.

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.

"The presence of the SPS granite factory in Subang also addresses the challenge of imported products, especially from China. In recent years, with the high demand for granite, Chinese products have flooded the local market, even though the government has implemented safeguard measures since 2018," he emphasized.

Data from 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.

The influx of imported products from China is also indicated to be due to unfair trade practices, such as a 14% tax subsidy, alleged dumping practices, and the reduction of ceramic thickness.