Indonesia

port news
DESEMBER, 2006

Indonesian Tiles,
Gives Values To the World’s
Market
Published by:
NATIONAL AGENCY FOR
EXPORT DEVELOPMENT (NAFED)
MINISTRY OF TRADE
Table of Content
Message from the Editor’s Desk
INDONESIAN EXPORT GALLERY
INDONESIAN FLOOR TILES, Places
Values Into the World’s Market
INDONESIAN EXPORT BRAND
PT SORINI CORPORATION, INDOSORB
penetrates into an unlimited world market 8
Message
from the Editor’s Desk
It is finally 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 offers 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 roofing
tiles, followed by flooring and wall tiles.
2 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 liquefied sorbitol. At the same year,
3 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 profile 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 reflecting 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!

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
Indonesian Tiles,
Gives Values To the World’s Market
T
he tile is house part
of which is capable to
increase the value of
house. All of its types from
ceramic tiles, mosaic tile,
to floor tile add up an extra quality
to your house. Tiles are set in the
kitchen, bathrooms, bedroom, living
room or even flooring 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 beneficial.
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 offers 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
Indonesia Export Gallery 3
 easy to clean and maintain. While
normal mopping and washing can
be effective, 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 benefit it.
Grout, or the substance that is used
to fill in the cracks between tiles,
comes in many different 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
4 Indonesia Export Gallery
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 floor 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 roofing tiles, followed by flooring
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 afford tiled
roofs and floors. 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
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 influence 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 floors of
dwellings consist of pounded
earth or concrete, or else of raised
wood floors, while wooden framing
supports walls of woven bamboo
matting, and the roofs are of dried
palm fiber or tiles. In urban areas,
floors 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 find 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 filled
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 efforts 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
Indonesia Export Gallery 5
 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

production time dramatically.
Increasing customs demand for
greater variety in styles and uses
of tiles has broadened the base
of techniques used to produce
final artistic effects. The most
revolutionary of these procedures
enables customers to choose
designs from a computer’s memory
and see the finished 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 final
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 efficiency. 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 field 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

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 financial 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 benefits to
SMEs.
Indonesia’s world tile exports
As the biggest importers of
Indonesia’s floor 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 flooring will also
create that ‘lived in’ feel. Being a
product of nature, you will never find
two tiles completely identical. Some
stones have occasional pits, sand
holes, fossils and other geological
flaws. Saturnia stone is not salt
water proof, even though the tiles
look magnificent 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.
Indonesia Export Gallery 7
 PT. Sorini
Corporation, Tbk.
INDOSORB penetrates into an
unlimited world market
F
ounded 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 liquefied
sorbitol. At the same year, with spirits
to develop and to be world’s known
as a sorbitol producer, it
8 Indonesia Export Brand
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 floated 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 liquefied
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
reducing
cost of

production, and giving added value
to the customers, making efficiency
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
Pacific also gives benefits 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 five 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
such as ISO 900/2001 certification,
KOSHER Certificate, 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
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
PT SORINI CORPORATIN, Tbk.
Jl. Raya Gempol, Pandaan - Pasuruan 67155
Jawa Timur, Indonesia
Phone (62-343) 631776
Fax. (62-343) 631779
or contact us:
Djoni Lam - joni@sorini.co.id
Stevanus Eko S. Taniman - stevanus@sorini.co.id &
Sofean Tanudjaja - sofean@sorini.co.id
Winarno Tjioe - win_is@sorini.co.id
Indonesia Export Brand 9
 PT. CHITOSE INDONESIA
Innovation by Your Inspirations
F
rom 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 first 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
10 Indonesia at Your Home
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
reflecting customers’ satisfaction and
increase any company’s appearance.
The marketing network that has
developed will surely prove the
service readiness through easiness
to find our products with its spare
parts in every Chitose representative
offices.
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:

Service
Chitose, with all marketing network
will provide the best services in
fulfilling 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 finishing 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 finally 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

Indonesia at Your Home 11