ANALYSIS: Indonesia
PT Asahimas Flat Glass Tbk (Indonesia-Japan joint-venture unit and subsidiary of AGC Group of Japan)
the region are clad using SRK laminated glass. There is a general consensus that the implementation of the existing public projects, specially, in the infrastructural sectors will boost demand for architectural and automobile industry sectors and also for utilizing the existing installed idle capacities and resume installation of underconstruction plants. Potential public spending will help boost sales, eventually resulting in expansion of market demands for glass products and export of some of them. At present, approximately 70 to 80 percent of the national glass market is dominated by the property and construction sectors. The remaining 20 percent is aimed at fulfilling the demand from the automotive industry. In terms of market destination, the glass industry also sells its products to other countries in Southeast Asia and Middle East, and in Japan, New Zealand and others, aside from supplying for the domestic market. About a third of the productions are exported.
Possible beneficiary
Among those industrial sectors to be stimulated by the public sector spending to increase the market demand, automobile manufacturing is likely to be a major beneficiary if sales decline is halted and some rise in car output helps push ahead the demand for automotive glass that experienced difficulties last year, according to Association of Indonesian Automotive Manufacturers (Gaikindo). When Indonesia’s car sales plunged by 15.5 percent to 671,679 units for the January-August period last year from 794,775 units in the same period of 2014, mainly driven by weaker consumer purchasing power, French multinational Compagnie de Saint-Gobain delayed its plan to build an automotive glass production facility in the country in 2015 as national car sales were forecast to hit a three-year low amid economic slowdown. Saint-Gobain CEO Pierre-André de Chalendar said that his company had decided to hold back its investment in the auto glass plant until the four-wheeler car and truck market started to recover. “We’re not going to do it this year, we’ll do it once the market recovers,” he said after stalling construction in the second half of last year. Saint-Gobain, which already purchased land at the Cikande industrial estate in Banten for the project at about US$22.4 million, has to stall the construction as Indonesian national auto sales for 2015 were forecast to drop to a depressing 1 million units, according to data from the Gaikindo. The reported car sales of 1.23 million units in 2013 declined by 1.6 percent to 1.21 million in 2014 and then dropped by a drastic 17 percent to 1 million units last year, causing a sales crash, from a 20,000 decrease in 2014 to a plummeting 200,000 plus in 2015. KBD Daewoo Securities analyst Maxi Liesyaputra has predicted that the automotive industry will continue to face challenges in 2016, given a weakening Rupiah against the US dollar. The Indonesian currency is lower in 2016 at an approximate average of Rp 14,500 per US dollar, than the 2015 average of Rp 13,400.
Retaining hopes
AKLP sources said, from 2008 to 2015, the property market in Indonesia was in a cycle of boom, and there are many buildings being built. The local glass processors still have a substantial market share, especially in the smaller buildings that do not use high performance insulated glass. “Sadly,” said Putra, “in mid 2015, the property market slowed down and is now stagnant. There are fewer new constructions slated for 2016 compared to the previous years.” “I personally think it will be at least mid 2016 or early 2017 that we start to see more new constructions, of course, depending on the Indonesian and global economy,” Putra suggested. Despite such mixed outlook, Indonesia’s largest float glass manufacturerprocessor, PT Asahimas Flat Glass Tbk (AMFG), the Indonesian arm of Japan
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asianglass AG 16-2
Location: 3 plant locations, Jakarta, Cikampek in West Java and Sidoarjo in East Java, Indonesia. Products: Float glass, processed glasses for building and industrial uses, automotive glass and mirrors. Markets: Domestic and export markets. Others: Asahimas float glass, construction glasses, tempered and laminated safety glasses, automotive glasses, figured glass, glass mirrors, heat-reflective glass and Optima brand IGU panels are widely used in Indonesia and abroad, and capturing demand steadily in the emerging markets. PT Muliaglass (Mulia Industry/Mulia Industrindo) Location: Lemahabang, Cikarang, Bekasi 17550, Indonesia. Products: Float glass, safety glass, building glass and automotive glass. Markets: Domestic and export markets. Others: Muliaglass produces 120,000 car sets of automotive glass, marketed at home and worldwide. Its float glass is of different shades and thickness for various uses and processing. Its safety glasses also have demand for building and industrial uses. PT Sinar Rasa Kencana (SRK) Location: Tangerang, Indonesia. Products: Tempered/laminated safety glasses, automotive glass, IGUs, architectural/ industrial glasses. Markets: Domestic and export markets. Others: Sinar Rasa Kencana (SRK) is in the automotive, architectural and industrial glass markets. It is capable of tempering glass panels of up to 7,000mm long by 2,140mm wide. It processes about half a million sq metres of glass per year. Roxy Glass Location: Pusat Niaga Roxy Mas, Jl KH Hasyim Ashari 125B, Jakarta, Indonesia. Products: Various processed glasses, including decorative glass panels and IGU. Markets: Domestic and export markets. Others: Roxy produces, also handcrafts, some 10,000 pieces, per month, of quality safety and building glasses and mirrors of classic/contemporary designs. Its triple glazed IG in lead and brass insert is known as ‘Roxy Glass.’ PT Surya Adhitia Fortuna Glass (previously PT Surya Fortuna Glass) Location: Batuceper, Km. 23, Tangerang 15121, Banten, Indonesia. Products: Processed glasses Markets: Domestic and export markets. Others: Surya Adhitia Fortuna’s tempered glasses are available with ceramic frits (ceramic coated to create desired motifs), usually applied in home appliances, electronic panel, room divider, bus and train windscreen, etc. Abebersa Pratama PT Location: Bekasi, Jawa Barat, Indonesia. Products: Processed safety glass and building glasses including IGU. Markets: Domestic and export markets. Others: Abebersa Pratama manufactures double and triple glass window and curtain wall IGUs, insulating glass panels, architectural and decorative glass panels and tempered/toughened glasses. PT Mayatama Manunggal Sentosa Location: Singosari-Malang, East Java 65153, Indonesia Products: Processed glass and crystal safety glass for building, automotive and industrial uses. Markets: Domestic and export markets. Others: Mayatama Manunggal Sentosa is the holder company of ‘Diamond Tempered’ brand that involve in glass processing. It also produces printing glass for furniture, industry, building and automotive. SRK building glass: Photocredit SRK
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