Indonesian tile industry could be hit by US tariffs

There are strong indications that Indonesia’s ceramic tile industry has tremendous growth potential, though recent trade news coming out of the United States may cause significant complications for this.

Increasing urbanization, a burgeoning construction industry, a significant population increase and a flourishing housing market are all combining to drive up the demand for quality ceramic tiles in this large South East Asian nation.

Ceramic tiles, with their versatility, durability and easy maintenance, are increasingly in demand as house building continues to gather pace in Indonesia’s main urban centres. In spite of this demand, competition from tile producers in other Asian countries poses a significant threat to local manufacturers. Various factors, including Indonesia’s high gas prices, mean that operational costs are relatively high, making it difficult for local producers to compete with cheaper imports from other Asian countries.

President Donald Trump’s imposition of tariffs could have a serious impact on the Indonesian market. The high tariffs on goods imported from Asia into the USA may lead to Chinese, Indian and Vietnamese manufacturers seeking to export to other markets, including Indonesia.

The SNI (Standar Nasional Indonesia), which provides consumer protection and quality assurance, and imposes minimum quality and testing requirements, could be used to block cheap imports from these countries.

At Digital Ceramic Custom Tiles, we produce a wide range of high-quality custom tiles using the latest tile printing technologies. If you are a designer working on a construction or renovation project, and are considering including a tile feature, get in touch with us and let’s discuss the range of options available.

Talk to us today and find out how we can transform a project of any scale into an exciting visual experience.

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