GRESIK: PT Arwana Citramulia Tbk did not increase the price of ceramic products in the last three years, although the operating cost has jumped as an impact of the increase in material and energy price.President Director of Arwana Citramulia Tandean Rustandy said the company will conduct an efficiency program in all of its business lines to keep the price, though the production cost is getting high.Most of our products fills middle and low class segment with a low purchasing powe. Thus, we will work extra hard to keep the price, he said amid the visit of Vice Minister of Industry Alex S.W. Retraubun in Arwanas plant in Gresik, East Java, yesterday.He said the company is able to keep, even to increase profit margin by depending on internal efficiency and boosting the utility of three plants in Tangerang, Serang and Gresik.All of the companies plants are optimally productive with utility up to 100%. We even have to increase the capacity in order to operate new plants, Plant IIC Extention, launched in April 2011, he said.Now, the total production capacity of Arwanas plants has reached 40.87 million square meter a year.The company plans to increase total capacity to be 43 million square meter in next year and it is also reviewing a plan to construct new plant.Tandean said the increase of cost production is mainly supported by the increase of material price, distribution cost, and energy cost as the increase in gas price and gas surcharge in East Java.According to him the gas price is relatively expensive, compared with other countries in Asia, besides the certainty of gas supply.Thus, the gas-based industry, especially ceramic industry is facing difficulties to boost its efficiency.The gas price in Indonesia, as he said, has reached US$6.8 per MMBtu, while Vietnam (US$4.2 per MMBtu), Malaysia (US$3.8 perMMBtu) and China (US$4.6 per MMBtu).The industry does not ask for gas subsidy, but at least the government is able to provide international price for gas. That is enough.Tandean also said the increase in production cost did not break the companys effort to increase its profit.Our business grows between 20% and 25% per year. In this year, the companys profits may grow 15% to IDR95 billion, he said.The sales in this year is estimated to reach 39 million square meter with a total value of IDR960 billion.The figure increased from last years figure of 35.4 million square meter with the total IDR843.8 billion.Vice Ministry of Industry said the effort of Arwana in keeping its price affordable has to be appreciated.Besides, as Alex said, the company pays attention to environment of its plant and surrounding areas by setting a green industry concept.All of the waste is utilized for the companys needs and building materials and fertilizer.(t03/msw)

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