Jakarta. PT Keramika Indonesia Assosiasi Tbk (KIAS) is unlikely to maximize its production capacity. The slow growth in business property has led to the low demand for ceramic.
Whereas, the poducer of ceramic under the brand of KIA expects to optimize its production capacity, which is rangung from 22 million meter square to 24 million meter square by the end of this year.
KIAS, which is one of SCG's business lines, already operated three ceramic factories in Gresik, Karawang, and Cileungsi in order to sustain the target of production capacity "Definitely, the production will drop later this year, but we are still not sure about the magnitude”, told Corporate Secretary of KIAS Verawaty Trisno to KONTAN, Thursday (10/11)
According to Vera, other local ceramic producers also experience slower productions. Despite of the fall in the productions, Keramika Indonesia does not worry about the marketing of ceramic products, as the company often directly supplies its products to the distribution company of construction materials, namely PT Inti Kokoh Arebama Tbk (KOIN). Inti Kokoh Arebama itself is the sister company of Keramika Indonesia Assosiasi, which are under the banner of SCG.
During the third quarter of 2016, about Rp 575.17 billion or 93.58% of KIAS’ revenue that amounted to Rp 609.3 billion was the result of the sales to a related party, which is Kokoh Inti Arebama.
To date, Keramika Indonesia just booked 30% of total target of sales for 2016. Verawaty herself once told KONTAN that the company is optimistic to achieve the target of sales, although revenue targets are still far from the expectations, the company is still optimistic to achieve the sales target. But she was reluctant to reveal the figure.
(MUHAMMAD FARID/Translator)
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