INDUSTRY.co.id - Jakarta - National glass industry adds production capacity to meet domestic demand while targeting export markets. To that end, the government gives an appreciation of the expansion step of the sector as it will strengthen the industrial structure in the country.

"They reported on the relocation in Cikampek, West Java. Through this new plant, production is targeted to increase 200 thousand tons and is planned to be operational by 2019, "said Minister of Industry of Airlangga Hartarto after meeting with CEO of Asahi Glass Co. Ltd. (AGC) of Japan, Takuya Shimamura and his staff at the Ministry of Industry, Jakarta, Monday (7/8/2017).

Menperin explained that the business expansion is conducted by PT Asahimas Flat Glass Tbk., Located in Ancol, North Jakarta with an installed capacity of one million tons of glass sheets per year from two production lines. "One furnace that moved to Cikampek, its capacity to 700 thousand tons per year, from the beginning of which only 500 thousand tons per year," he said.

To achieve these production targets, Asahimas Flat Glass asked for certainty of raw material supply. The reason, PT Asahi Chemical had experienced a shortage of salt stock for three weeks, which is used to produce caustic soda as glass raw materials. "But according to their report, if the problem of raw materials that have been completed and can be overcome," said Airlangga.

Therefore, the Ministry of Industry continues to spur the availability of raw materials and energy for the industry so it is not constrained in the production process. "The glass industry is a potential sector, because it is able to export," he said. With the smoothness of production, the double effect that brought the industry will run well as on the increase of added value, employment, and foreign exchange earnings.

According to the Director General of Chemical, Textile and Multifarious Industries (IKTA) Achmad Sigit Dwiwahjono, the supply of silica for Asahimas originated from Belitung, which has been delayed for some time and only able to meet 30 percent of the demand. "They need 50 thousand tons of silica every month, and if the raw materials have to be imported, the cost of production could swell," he said.

Meanwhile, Shimamura said, Asahi continues to invest in the last three years in Indonesia. "Our total expansion in the last 3-4 years has been USD 1.5 billion, chemical plant only about USD 1 billion," he said. Currently, PT Asahi Chemical started to build power plants and chemical plants worth USD 400-500 million and total investment for relocation project PT Asahimas Flat Glass Tbk. Estimated at USD 167 million.

In addition to increased production capacity, Asahimas also applies special technology at Cikampek plant. Information in the public disclosure of Indonesia Stock Exchange (BEI) said, Cikampek plant stove is environmentally friendly and efficient to suck fuel. While the glass factory production for architectural and automotive needs.

Asahimas sells Cikampek factory glass production to domestic and foreign markets. For export destination countries, they are targeting to USA, Brazil, Belgium, Italy, Pakistan, Thailand, Singapore, China, Malaysia, Philippines, Vietnam and Japan. As of the third quarter of 2016, Asahimas domestic sales amounted to Rp 1.71 trillion and export sales of around Rp 1.07 trillion.