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Salt Industry Import Packaged for Consumers, PT Garam Ignore Local Products: June 2017

Indonesia lacks salt as much as 2 million tons per year. Based on data from the National Development Planning Agency (Bappenas) in 2016, should be an opportunity by PT Garam as the only state-owned enterprise that regulates the salt trading system to increase production capacity. Especially from the plots of salt farmers' land.

But what happens in the field, imports are often made a choice. As special only for industrial salt needs. Ironically, after coming tonnes, the salt industry only changed packaging to be marketed as consumption salt. This mode is revealed from the raid of PT Garam's warehouse in Gresik by the Police Headquarters. The transfer is done by PT Garam to avoid the 10 percent customs provision imposed on consumption salt, so it is converted into non-taxable industrial salt.

Though this step is counter productive with the government's desire to strengthen food security. For that there needs to be an institution mechanism ready to buy farmers' production. If necessary, the Bulog function is enhanced to secure the national salt stock, so that farmers are no longer playing with low prices during harvest.
Iodine Expensive price, Garut Salt Farmers Complain : April 2014

Farmers' salt in Cikelet, Garut West Java complains. They complained about the high prices of iodine that reach USD 1 million per kilogram (kg). "In fact, iodine was as an extra ingredient that must be present to be mixed with the sea water," said Chairman of Farmers Group Tani Muara Tiga, Jono Sujono to Republika, recently. Currently, as many as 20 people in four villages in the district Cikelet, continue to develop the processing of salt. Four villages were Cekelet Village, Pamalayan, Cijambe, and Cigadog. In the village itself there are four residents Cigadog already started to develop the venture.

Salt processing in the region has been running for the past two years. Initially, the effort was facilitated by Bank Indonesia (BI). Jono said, in the village there is a field of salt, but salt is not any farmer, "he said, based upon the fact that, subsequently tested by the salt farmers of Indramayu is deliberately brought to the Main Page. Apparently, Jono said, the results are even better in Garut, because the levels of salt 5 ppm; while in Indramayu only 3 ppm because it has a lot of contact with the waste.

Chairman of Farmers Group Sawargi, Muldan, also recognizes that the quality levels of salt in the southern ocean, especially Garut region, very nice. Even during the dry season could reach 7 per mile, because it is not mixed with fresh water.

"Now we are still difficulties iodine, must be bought in Bandung. The price of 1 kg of iodine expensive Rp.1 million," complained Muldan. The need for iodine is not too much.

However, according Muldan, iodized salt is a requirement that must be followed if you want to get into the market thereof. To 500 kg of salt, then use only 1 gram of iodine.

For marketing, the salt produced by the farmers still for consumption needs of local residents. They used to use salt for the production of salted fish. "Salt is usually sold at Rp.1, 000 for 1 kg of her," he said.

Iodine Mining in Indonesia
Indonesia Industry Report and Market Research
September 18, 2018
Industry Code : B2604
Forecast to : 2022

Iodine Mining in Indonesia Preparation for the mining and extraction of iodine bearing ground water. The industry's activities include distillation and purification of the mineral extract, which cannot be separated from the mining of iodine.
The primary activities of firms in this industry are:
- Iodine Mining.
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Chapter Headings US $ Select All
Industry Outlook 60.50
Key Statistics 60.50
Market Characteristics 36.30
Segmentation 36.30
Industry Conditions 60.50
Industry Performance 60.50
Key Competitors 60.50
Key Factors 27.50
Kimia Farma and Mitsui Corp Form Joint Venture BY Adi Teguh & Andryanto Suwismo, 4 Apr 2012, 0.39
Iodium Factory 0.39
Mining Exporters Must Have Permit from Department of Trade 0.39
Opportunities for Investors Opened, Permit Regulations Deregulated 0.39

Report Content

The Iodine Mining industry in Indonesia research report contain trend analysis, statistics, market size information, industry growth rates as well as major competitors.

Major market segments are identified and also those forces affecting demand and supply within this industry. Performance analysis includes emerging industry trends as well as recent results and performance of each key company. Drawing on the depth of information DIS also provides 5 year forecasts for this industry.

The comprehensive study also examines details such as the barriers to entry, operating cost structure, technology & systems and domestic & international markets. Tables and statistics include: Industry revenue, exports, imports, wages and number of companies in the industry, Industry growth and geographic regional data.

KEY STATISTICS 2014 2015 2016 2017 2018
Industry Revenue 107,942 104,367 131,689 158,085 169,151 Rp.Billion
Industry Gross Product 7,016 6,784 8,560 10,276 10,995 Rp.Billion
Number of Establishments 110 120 130 130 130 Units
Employment 109,600 101,200 85 81,000 85,400 Units
Exports 2,856 3,457 6,481 6,521 7,820 Rp.Billion
Imports 10,926 10,899 25,482 30,419 35,880 Rp.Billion
Total Wages 1,425 1,316 1,114 1,010 1,109 Rp.Billion
Domestic Demand 116,012 111,809 150,690 181,983 197,211 Rp.Billion
The data above is sample data only

Cost of Goods Sold 67.13 Gross Profit 32.87
Operating Expense 21.5 Profit (Loss) Before Tax 11.36
Administration 1.58 Depreciation 0.56
Electricity 0.66 Freight 1.99
Fuel, Parking, Toll & Retribution 1.62 Interest 3.09
Land and Building Rental 2.74 Marketing 2.69
Repairs and Maintenance 0.54 Service Fee 0.7
Staff Welfare Allowance 1.38 Other Expenses 0.92
Stationery & Inventory 0.48 Telephone 0.8
Utensils and Equipment 1.24 Wages and Salaries 0.5
The data above is sample data only

Central Java 13.4 DKI Jakarta 6.5
East Java 22.4 North Sumatra 17.9
Papua 2.0 Bali 3.0
South Sulawesi 6.0 West Java 28.8
The data above is sample data only
Price 500.007.750.000
Payment Method
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Table of Contents
About this Report
Key Statistics
Market Characteristics
Industry Conditions
Key Factors
Key Competitors
Industry Performance