Glasstech Asia 2015, the 13th International exhibition showcasing Glass Products, Glass Manufacturing, Processing & Materials Exhibition, will take place from November 19 – 21 2015, at Jakarta International Expo Kemayoran, Indonesia.
The international exhibition, organised by Singapore Glass Association (SGA) and Conference & Exhibition Management Services Pte Ltd (CEMS), and hosted by Indonesian Association of Sheet and Safety Glass (AKLP), will feature 300 exhibitors from 30 countries, over 8,000 square metres.
The event will also incorporate the 9th Specialised Hollow Glass Asia, a specialised international exhibition for the hollow glass manufacturing, machinery, equipment and glass products industry, 5th Specialised Glass Accessories Asia, an international exhibition for glass accessories and products, and international-scale conferences, the Asia Architectural Glass Conference 2015, the Green Building Seminar 2015 and the Glass Processing Conference 2015.
Edward Liu, PBM, Group Managing Director of CEMS said, “Glass is shaping the local design landscape, addressing stakeholders’ demand for aesthetics and green architecture. Glasstech Asia 2015 aims to connect global glass industry players to local architects, builders, contractors, developers, engineers, and facility managers, and showcase glass trends like self-cleaning glass products and insulated glazing glass, to help trade professionals in their design decisions.”
He added that Glasstech Asia 2015 is expected to bring positive impact to Indonesian market and industry as well as support to the Indonesian government in realising the infrastructure development goals that will eventually drive aggressive investment and economic growth.
Despite the current economic conditions, there is good news for the national glass industry due to the disbursement of the Revised State Budget of 2015, especially for infrastructure projects. With these projects the automotive industry will be given an opportunity to boost sales, and this will eventually result in more demand for glass products.
“The prospect of the glass industry in Indonesia is influenced by the conditions of several industries, mainly property and automotive sectors. As with any other industries, both sectors have been affected by the economic slowdown, which only managed to grow at the level of 4.7% in the first quarter of the year, falling short of the initial government’s target of 5.7%1,” said Putra Narjadin, Chairman II, the Indonesian Association of Sheet and Safety Glass (Asosiasi Kaca Lembaran dan Pengaman (AKLP).
He added that the glass industry in Indonesia is dependent on the demand from the property and automotive sectors, which are the main markets for glass producers. Therefore, growth in the infrastructure sectors, particularly property and construction as well as automotive, will improve glass sales and vice versa.
At present, approximately 70%-80% of the national glass market is dominated by the property and construction sectors. The remaining 20% is aimed at fulfilling the demand from the automotive industry. Meanwhile, in terms of market destination, the national glass industry also sells its products to other countries such as Southeast Asia, Japan, Middle East and New Zealand, aside from supplying for the domestic market, with exports taking a 30%-40% portion from the total national production.
Another possible catalyst for growth in the national glass market is BI’s policy to relax the LTV policy for mortgage. For mortgage of a second house with maximum size of 70 square meters, BI has upped LTV, from 70% to 80% as stated in Bank of Indonesia’s Circular Letter No. 15/40/DKMP, 2013; therefore, clients will only need to provide an advance by 20% instead of 30%, as previously regulated. Meanwhile, for the mortgage of a third house and beyond, LTV has also been upped to 70% from 60%. For the purchase of row houses with a size of more than 70 square metres, LTV has been upped to 80% (first house) and 70% (second house and beyond).
A similar relaxation has also been given for motor vehicle credits, as now clients are only asked to provide an advance by 20% from the vehicle’s total price, instead of 25%-30% as previously regulated. This initiative is expected to improve public buying power with an aim to boost growth in the property and automotive markets, as this will impact the national glass industry.
“Aside from challenges such as the economic slowdown, which are also being experienced by other countries, Indonesia remains an attractive market for global glass producers. The national glass industry is currently dominating domestic production at the level of 700,000-800,000 tons per year. Imported sheet glass is only able to take up a market share of 5%, for specific sheet glass products that are not produced in Indonesia. We hope that Glasstech Asia 2015 will bring positive impact to Indonesian glass industry along with the rolling of aggressive infrastructure developments,” said Putra Narjadin.