DESEMBER, 2006

port newsIndonesia

Published by: NATIONAL AGENCY FOR

EXPORT DEVELOPMENT (NAFED) MINISTRY OF TRADE

Indonesian Tiles,Gives Values To the World’s

Market

Table of ContentMessage

from the Editor’s Desk

Message from the Editor’s Desk 2

INDONESIAN EXPORT GALLERY

INDONESIAN FLOOR TILES, Places Values Into the World’s Market 3

INDONESIAN EXPORT BRANDPT SORINI CORPORATION, INDOSORB penetrates into an unlimited world market 8

Published by : The Ministry of Trade, Republic of Indonesia, National Agency for Export Development (NAFED) Advisor : Acting Chairman of NAFED : Mr. Hatanto Reksodipoetro Chief Editor : Mr. Rahayubudi Editor : Djasdi Darwis, Sri Maryani Consultant : Didi Sulistiyono Printed By: CV Kopan Jaya Reporter : TB Machroja, Donawati, Tiara Lumban Gaol Layout : Xi-ant Design Address : Jl. Kramat Raya 172, Jakarta 10430, Indonesia Phone : (62-21) 3100569 , 31904774, Facsimile : (62-21) 31901371,31901470 Website : http//www.nafed.go.id e-mail: nafed@nafed.go.id

It is fi nally the end of year 2006. Houses will be renovated, to welcome the new year. Initiated by this spirit of season, we featured Indonesian Tiles on our export gallery. Ceramic tile is one of which is easily found for purchase. It comes in many colors and textures as well as designs and patterns. Mosaic tile, or tile that form a pattern once laid properly is an elegant element for home decorative part. Mosaic tile also off ers a wide range of selection. Beside those, clay, ceramic, and refractory materials such as kaolin and ball clay are the raw materials consumed in the manufacture of ceramic tiles. Other industrial chemicals, some lead based, are also used to produce ceramic tiles. The evolution of clay tiles began with the introduction of roofi ng tiles, followed by fl ooring and wall tiles.Next to it, on the “Export Brand” section, we put PT Sorini Corporation, Tbk. Sorini’s products are widely used in various consumer goods industry, pharmacy, tooth paste, cosmetics, C vitamin, and food products either domestic or export markets. Sorini started its commercial production in 1987 with the annual capacity of 5,000 tons of liquefi ed sorbitol. At the same year, with spirits to develop and to be world’s known as a sorbitol producer, it launched its export sales using “INDOSORB” brand. The brand has been registered since 1989. However, not only is the brand used for international market, but domestic trade as well. Certainly, Sorini believes the export market will become world without borders in trades.On the Indonesia At Your Home section, we put a profi le of Chitose. In the middle of Indonesia’s economics development in 1979, PT. Chitose Indonesia Manufacturing has been established in order to support the social and economy growth with high technology chairs. Partnering with Chitose Mfg. Co. Ltd Japan and also local companies, the company has done extensive research, testing and improvement to provide the best available product through high technology process. Consistency in quality, safety, healthy and beauty is the main consideration of leading Chitose products which refl ecting customers’ satisfaction and increase any company’s appearance.It is the end of the year, the new year has waited ahead us. Let’s gear up and be ready for a bigger challenge in the next year. We also put hopes on Indonesia export development, may the best also happen to both the expoters and importers. Happy New Year to all our readers!

The tile is house part of which is capable to increase the value of house. All of its types from ceramic tiles, mosaic tile,

to fl oor tile add up an extra quality to your house. Tiles are set in the kitchen, bathrooms, bedroom, living room or even fl ooring throughout the house. Tile is available in most home improvement stores and also

in specialty stores. Finding the right tile for a house with the right color, design, and even pattern seems not to be an easy job. But, once it is successful the project is benefi cial.

Tile is essential in every house

Ceramic tile is one of which is easily found for purchase. It comes in many colors and textures as well as designs and patterns. Mosaic

tile, or tile that form a pattern once laid properly is an elegant element for home decorative part. Mosaic tile also off ers a wide range of selection.

Bathroom tiles add up quality as well as extra security. They can protect drywall and paint from water damage if properly installed. Floor tiles provide the same level of protection. These tiles are usually

Indonesian Tiles, Gives Values To the World’s Market

3Indonesia Export Gallery

easy to clean and maintain. While normal mopping and washing can be eff ective, often an extra measure to keep them up to standard is to scrub the grout and edges with a brush. Elbow grease is the best cleaning product. While this does not have to be done each time the tile is cleaned, doing it regularly will improve the look of the tile overall.

Proper installation is important when adding tile to a house. If done improperly, the tile can often break or chip away. Consider hiring a professional so that the tile is laid smoothly and even looks its best. When choosing the tile, do not forget to choose a grout that will benefi t it. Grout, or the substance that is used to fi ll in the cracks between tiles, comes in many diff erent colors and qualities. Again, the item is widely available at home improvement stores.

Tile, whether mosaic tile or ceramic tile, can boost home quality of a home. It is an added investment into a home and should be done so with the overall supervision of a

professional.

Tiles industry in the world

The report’s end-use market analysis provides executives with the growing sale opportunities in residential, non-residential, and transportation equipment markets. Residential markets are further divided into new construction, residential remodeling, and manufactured housing markets. Non-residential markets are seg-mented into new construction and commercial contract purchasers.

Nearly 99 percent of the industry’s product share is composed of glazed and unglazed fl oor tile and wall tile, including quarry tile and ceramic mosaic tile. Because this industry is so focused on decorative tiles, it is completely dependent on the economic health of the construction and remodeling industries, both of which thrived in the late 1990s due to a booming economy; these industries remained strong in the early 2000s, despite weakening economic conditions, thanks to historically low interest rates.

Clay, ceramic, and refractory materials such as kaolin and ball clay are the raw materials consumed in the manufacture of ceramic tiles. Other industrial chemicals, some lead based, are also used to produce ceramic tiles. The evolution of clay tiles began with the introduction of roofi ng tiles, followed by fl ooring and wall tiles. The Roman historian Pliny wrote that tiles were invented in Greece on the isle of Cyprus by Cinyra, son of Agrippa. The earliest baked clay roof tiles, which date back to around 1800 B.C., were excavated near Argos, Greece. The technique for production of this architectural medium was transported to southern Italy and Sicily and slowly spread throughout the rest of continental Europe. Until the Industrial Revolution when tile making was mechanized somewhat, only the very rich could aff ord tiled roofs and fl oors. This is evident in the 89 B.C. Charter of Tarentum, which stated that Senate membership and voting privileges were restricted to those men who owned housing

4 Indonesia Export Gallery

within Tarentum, roofed with at least 1,500 tiles.

As with all industries, the Industrial Revolution forever changed the manufacture of clay tiles. By the 1850s, the British-led industry in machinery innovation heavily exerted infl uence to the production methods in Germany, France, Belgium, Holland, Spain, and Portugal. The introduction of machines to aid in the manu-facturing process resulted in dra-matically higher production levels and far greater availability of tiles.

The ceramic tile industry is closely related to the construction industry, both residential and non-residential. Due to lower interest rates and the economic improvement in general, housing has started and residential remodeling has grown in the late 1990s. In the latter part of the decade, ceramic tile was used for upscale remodeling and building of bathrooms and kitchens.

In rural areas the fl oors of dwellings consist of pounded earth or concrete, or else of raised wood fl oors, while wooden framing supports walls of woven bamboo matting, and the roofs are of dried palm fi ber or tiles. In urban areas, fl oors are of cement or tile, the framing of the dwellings is of teak or morantee wood, the walls are of brick and plaster, and the roofs are of tile or shingle. Although most of the population is non-urban, the major housing problems are in the cities, where new arrivals crowd into squalid slums. In their desire to escape the restraints of the traditional rural life and seeking the opportunities in the cities, most immigrants fi nd living conditions that are less attractive than those of the country.

Jakarta is the most modern city in Indonesia and also the one with the greatest problems. It lacks of dependable supply of electricity, gas,

and water, an adequate telephone system, a waste-disposal system, and adequate schooling and health facilities. There is a severe housing shortage, with the gap being fi lled by substandard, temporary housing that does not require building permits. Subsidized housing is provided largely by employers, including government ministries, for a limited number of key employees, although eff orts by the government are being made to provide more low-cost housing to a wider group of people.

Production methods for manu-facturing ceramic tiles have been greatly improved since the end of World War II. Machine decoration has increased overall output, while improved drying machines move tiles to shipping quicker. Additionally, new advances in airless and microwave drying techniques hold the promise of revolutionizing the drying process while cutting

5Indonesia Export Gallery

production time dramatically.Increasing customs demand for

greater variety in styles and uses of tiles has broadened the base of techniques used to produce fi nal artistic eff ects. The most revolutionary of these procedures enables customers to choose designs from a computer’s memory and see the fi nished product on a computer simulation of the customer’s own bathroom. In the future, computers”combined with machine tile decoration”will allow customers to design their own tiles for the manufacturer to then produce. While clay tile making continues to resemble many of the practices used over the last 1,000 years, better production methods

and materials lend new levels of quality and consistency to the fi nal product.

Kebumen, roof-tile cluster (do-

mestic market-oriented) The Kebumen roof-tile cluster

has a large number of small-medium enterprise (SMEs), but the cluster is found to be in critical condition for survival under tight competition with more advanced roof-tile clusters. Yet, its product is well-known in Central Java with the brand name “Sokka”. The production process has a number of stages, which can potentially lead to a division of work.

Vision and strategy: Vision is to catch up with more advanced

clusters and to enhance competitiveness by improving the standardized production quality and in production effi ciency. This vision requires the cluster to employ a strategy of forming the networks through marketing activity, innovative production process, material supply and employing joint activities in order to complement limitations of individual SMEs.

Nevertheless, SME capacities are to be strengthened in the fi eld of preparation of business proposals to mobilize new loans from banks. The best practice would be, as seen in the Kebumen roof-tile cluster, the creation of a consortium that prepares its business plan. This appears to be an important

LIST OF IMPORTERS OF TILES FROM INDONESIA

NO. COUNTRY EXPORT VALUE (IN US$ 000)

Jan-Sep 2006 2005 2004 2003

1. United States 21,871 26,604 31,028 24,882

2. Taiwan, Province of China 7,664 7,613 5,913 1,514

3. Australia 6,307 7,455 12,190 12,709

4. Malaysia 4,430 6,946 10,389 7,686

5. Korea, Republic of 7,580 6,536 7,526 9,682

6. Thailand 3,066 4,623 5,899 4,122

7. Saudi Arabia 2,723 3,408 1,948 1,732

8. Pakistan 1,375 2,446 1,327 1,382

9. Canada 1,928 2,092 2,513 2,396

10. Singapore 642 1,965 1,556 2,973

6 Indonesia Export Gallery

outcome of capacity strengthening of SME clusters. Subsequently linking to actual lending from banks is also critical. Recently, a growing concern has been placed on the role of fi nancial intermediaries in such a linkage. The KKMB program, under supervision of the Bank of Indonesia, will begin operation to improve access of SMEs to the banking sector. Eventually capacity strengthening of such intermediaries or consultants would bring favorable benefi ts to SMEs.

Indonesia’s world tile exports As the biggest importers of

Indonesia’s fl oor tiles, the United States has 15.31% of import trend from 2001-2005. It shows a good trend of development. But the second place, Taiwan has higher percentage, as it is 96.54%. Malaysia also has shown a great import trend from 2001-2005, to 98.03%. Thailand with 82.47% of import trend from 2001-2005, also shows a promising increasing imports in the future. It

seems that Indonesia’s tiles have won the heart of most of the Asian market.

Beside Asian market, Australia is also a prospective and growing market. Though the value of import was slowing down in 2005, but there is a great hope of its development in the future. Saturnia stone, a new product on the West Australian market, is a natural stone of timeless beauty and quality. The natural qualities and textures make it suitable for any application. From the outside patio to the kitchen cool room, Saturnia stone can be used absolutely anywhere because of its high density. The tile does have a smooth and rough side and saw marks are sometimes visible on both sides. Like the terracotta tiles, this form of stone fl ooring will also create that ‘lived in’ feel. Being a product of nature, you will never fi nd two tiles completely identical. Some stones have occasional pits, sand holes, fossils and other geological fl aws. Saturnia stone is not salt

water proof, even though the tiles look magnifi cent around the pool. If you wish to install them around your pool, you will have to seal the tiles before every swimming season and hose them down after heavy use.

Another popular stone floor covering is sandstone, which is a big hit in Australia and produced by Indonesia. The tiles contain their own individual color and texture which matches with the interior or exterior decor of any home. Sandstone is extremely durable making it ideal for high traffic areas in the home. Sandstone needs to be sealed caking it easier to clean and enhancing its natural beauty. If laid outside, the tiles will need a couple of coats of a water based sealant. For indoors, a matt, gloss or satin finish can be used depending n your personal taste. The tiles will need resealing every four to five years. With a hard work and creativity, it will be possible for Indonesia to develop more in the world’s market.

7Indonesia Export Gallery

Founded in Surabaya by Adikoesoemo Family in 1983, PT Sorini Corporation is a company producing starch derivatives which

include sorbitol, maltitol, dextrose monohydrate, maltose syrup, sorbitol powder and maltodextrine. In 1985, Sorini developed a modern sorbitol production facility in Gempol, Pasuruan Regency, East Java.

Sorini started its commercial production in 1987 with the annual capacity of 5,000 tons of liquefi ed sorbitol. At the same year, with spirits to develop and to be world’s known as a sorbitol producer, it

launched its export sales using “INDOSORB” brand. The brand has been registered since 1989. However, not only is the brand used for international market, but domestic trade as well. Certainly, Sorini believes the export market will become world without borders in trades.

Sorini’s products are widely used in various consumer goods industry, pharmacy, tooth paste, cosmetics, C vitamin, and food products either domestic or export markets.

Sorini has fl oated its shares in the Jakarta Stock Exchange and Surabaya stock Exchange since 1992. As part

of its strategy to be an outstanding industry player and boost competitive edge at the overseas market, Sorini in 1994 set up PT Sorini Towa Berlian Corporindo

(STBC) which is a joint venture business with

Rowa Chemical Industry Co. Ltd. and Mitsubitshi Corporation. Currently the annual capacity of liquefi ed sorbitol and STBC powder reaches 55,000 tons.

Thanks to reputation and “Indosorb” brand development in the export sale, the company is happy as it has exported its products to more than 60 countries. But it still needs market expansion to East European regions, Africa and the Latin America. It continues to open more opportunities to sell more branded products through marketing such as promotion and direct selling to the users, open sole distributors and agents in the non-traditional market destination countries. It is also often, promotion is made to forge cooperation with the multi-national companies from one country to another.

To face with competition in the destination country, the company’s

competitive edge lies at its capabilities in

r e d u c i n g cost of

PT. Sorini

Corporation, Tbk. INDOSORB penetrates into an

unlimited world market

8 Indonesia Export Brand

production, and giving added value to the customers, making effi ciency packaging and distribution costs, giving strategic interest to the customers, and putting priority to service and customer’s satisfaction. Its location which is strategic in Asia Pacifi c also gives benefi ts to the company’s competitive edge.

In addition, the company has also developed its brand products by focusing on the advanced country while continued to forged cooperation in the developing countries.

Over the last fi ve years, it continues to note more than 40% increase in the sale volume with a 50% surge in export value and 30% increasing number of customers. The export coverage at present has reached 63 countries.

The most important event in the Sorini’s history is when in 1989 it widely launched its products to the market. Then in 1995 to 2000, the company noted a growth. In 2001

to 2005, Sorini played its roles in export market. One of them is that Sorini was a sole distributor for the Japanese BASF/Takeda giant.

The other supporting factor, which catapults it at the international market, is that Sorini won the product quality standard and awards

such as ISO 900/2001 certifi cation, KOSHER Certifi cate, Best Company by Jakarta Stock Exchange in 2005, Best Provincial Brand Award from Association of Companies in China. In 2006, Sorini was awarded Primaniyarta for the Global Brand Category.

In the future, Sorini hopes to make Indosorb as world’s most outstanding supplier and to play roles at South Africa, South Asia, Japan, the USA, South America, and Europe.

In addition, it also focuses on making added value products and retaining quality, participating at the international scale exhibitions, as well as making innovation in packaging and distribution.

Edited by Widy Haryono

PT SORINI CORPORATIN, Tbk. Jl. Raya Gempol, Pandaan - Pasuruan 67155Jawa Timur, IndonesiaPhone (62-343) 631776Fax. (62-343) 631779

or contact us:Djoni Lam - joni@sorini.co.idStevanus Eko S. Taniman - stevanus@sorini.co.id &Sofean Tanudjaja - sofean@sorini.co.idWinarno Tjioe - win_is@sorini.co.id

9Indonesia Export Brand

From the beginning in early 80’s as local investment company, PT. Chitose Indonesia Manufacturing (Chitose Indonesia) has

managed cooperation with Chitose Manufacturing Company Ltd., Osaka, Japan (Chitose Japan) to produce a high quality of chairs. Chitose Japan is the fi rst Japanese furniture company held JIS rewards in Japan Industrial Standard. Chitose Japan established by USHIMATSU KASSAI in 1918 and then develops further by his son YOJIRO KASSAI. Chitose Japan has applied all production system and technology to make sure the highest quality of product

that made in Indonesia, starts from raw material, production system to quality control. The result is to make Chitose Indonesia as the biggest chair manufacturing with 900,000 units yearly production capacity that dominates Indonesian market. Since 1986, Chitose Indonesia has succeeded to enter international market and periodically exporting to Saudi Arabia, Brunei, Hong Kong, Taiwan, Malaysia, Singapore, and even Japan. Today, Chitose Indonesia owns distribution and sales channels worldwide.

In the middle of Indonesia’s economics development in 1979,

PT. Chitose Indonesia Manufacturing has been established in order to support the social and economy growth with high technology chairs. Partnering with Chitose Mfg. Co. Ltd Japan and also local companies, the company has done extensive research, testing and improvement to provide the best available product through high technology process. Chitose Indonesia makes its product from the consumers’ needs and their inspiration. It thrives for the input. The satisfaction of the consumers is Chitose Indonesia’s ultimate goal and their needs are what today Chitose chair made of is. Consistency in quality, safety, healthy and beauty is the main consideration of leading Chitose products which refl ecting customers’ satisfaction and increase any company’s appearance. The marketing network that has developed will surely prove the service readiness through easiness to fi nd our products with its spare parts in every Chitose representative offi ces.

In doing the business, Chitose has held on to the mission which is: “Build Chitose to be the leader of chair manufacturing in Indonesia and delivers products with safety, comfort and beauty features”. The mission is then supported with the visions, which are:

PT. CHITOSE INDONESIAInnovation by Your Inspirations

10 Indonesia at Your Home

Service

Chitose, with all marketing network will provide the best services in fulfi lling customers’ needs up to after sales service. Quality

We are care of the product quality with the support of ISO 9001 quality management application. Acknowledgement from JIS (Japan Industrial Standard) and SNI (Standar Nasional Indonesia) is the guarantee of Chitose product quality. Development

RisOur continuous research and

development will provide new innovations and bring maximum satisfaction to all of our customers. Go International

For almost two decades, our products have been accepted in any part of the world; USA, Europe, Asia, Middle East, and Africa. It is a proof for international acknowledgement to Chitose products. Commitment

Our commitment is to provide the best services through high quality products.

Chitose Indonesia has successfully entered the world market. It

supported by the ability to meet the standards of Indonesia and Japanese industry. These achievements cannot be separated from three factors that make Chitose stand out from the rest: Stability in quality, comfort, safety and health for the user, as well as being aesthetically pleasing. From time to time, the quality of Chitose products has been strictly maintained. It is made possible by the production process and fi nishing process; which referred to the integrated system of automation. The implementation of the system results in uniform and consistent shapes and quality for all Chitose products.

Besides making high quality

products, Chitose also care about the ecosystem preservation. Thus, the waste water treatment proves the company’s commitment to clean and healthy environment. The treatment consists of; the separation process of the solid and liquid waste chemically, then the liquid waste is strained and pressed so that its acidity level could back to normal (pH = 7), and now the former waste water could be irrigated to the river safely and without harming the environment.

Those dedication and spirit has fi nally made Chitose achieve some milestones. The year of 2001 was truly history for PT. Chitose Indonesia Mfg. The 1,000,000 unit per year sales and production target successfully achieved. It is reasonable if all of commissioners, directors and management of PT Chitose Indonesia Mfg arrange a sudden event to celebrate the moment. Directors and Managers give sign to those monumental chairs. One million milestone boosts up the pride yet challenge for PT. Chitose Indonesia Mfg to keep up the achievement in the next years.

CHITOSE INDONESIA MANUFACTURING, PT Jl. Industri III No. 5, Leuwi Gajah , Cimahi, JAWA BARAT 40533 Telepon : (62-22) 6031900 Fax : (62-22) 6031855 E-mail : export@chitose-indonesia.com Website : www.chitose-indonesia.com

11Indonesia at Your Home