Posted on

Indonesian Pumice Stone Price

Indonesian Pumice Stone Price

The price of Indonesian pumice (current price) in the period 1984-1991, and calculated based on the volume and value of exports, apparently fluctuated, but showed an average increase of 3.16% per year, the price was expressed in US dollars, whereas in rupiah, the increase was greater , namely 13.84%.

This difference is caused by changes in the value of the US exchange rate against the rupiah every year, which turns out to be higher. In 1985 the price of pumice per tonne was 115.32 US dollars, then decreased to 105.43 US dollars in 1988, and rose again to 135.77 US dollars in 1991. It is different if it is in rupiah, the price in 1985 is Rp 128,582.00 per ton. In 1988 it increased to Rp. 178,388.00 per ton, and in 1991 it continued to increase until it reached Rp. 270,455.00 per ton (Table 6).

Table 6. Indonesian Pumice Price

Year = Price per ton *)
…… = US Dollar = Rupiah
1985 = 115.32 = 128.582.00
1986 = 119.27 = 153,023.00
1987 = 117.72 = 194.238.00
1988 = 105.43 = 178.388.00
1989 = 116.37 = 206.790.00
1990 = 137.67 = 254.690.00
1991 = 135.77 = 270.454.00
Source: Central Bureau of Statistics, reprocessed

Note: *) The price of pumice (current price) is calculated through the volume and value of exports

Indonesian Pumice Stone Prospect

To be able to see the prospects for the Indonesian pumice mining industry in the future, it is necessary to review/analyze several influencing factors or aspects, both supporting and hindering. Because the data obtained were very limited, the analysis was only carried out qualitatively. In addition, projections for the year 2000 will also be made.

Influential Aspects of the Pumice Stone Industry in Indonesia

The development of the pumice mining industry in Indonesia, whether current, current or future, is influenced by the following aspects; potential, government policies, domestic and foreign demand, prices, substitutions, and other aspects, such as overlapping land, transportation distances and information on potential and utilization technology.

Availability of Pumice Industry Potential in Indonesia

The potential of Indonesian pumice scattered in Bengkulu, Lampung, and West Java, Yogyakarta, West Nusa Tenggara, Bali and Ternate areas, cannot be known with certainty. But it is estimated to have reserves of more than 12 million m3. According to the Mining Service of the NTB Province, the largest potential for pumice deposits is on the island of Lombok, West Nusa Tenggara, and its reserves are estimated at more than 7 million m3.

When viewed from the current production level, which is around 175.00 tons per year, the potential for pumice in Indonesia has only been exhausted for more than 40 years. However, the exploration and inventory of pumice deposits in the areas mentioned above needs to be upgraded to a more detailed exploration, so that the amount of reserves and their quality can be known with certainty.

Government Policy on Pumice Stone Industry in Indonesia

Aspects that are no less important for the mining industry are government policies, including planning for exploration outside of oil and gas since Pelita IV, deregulation in the export sector, and increasing the use of natural resources. This policy is basically an incentive for exporters and entrepreneurs to invest, which includes the pumice mining industry.

However, in order for the government’s policy to be more successful, for the pumice mining industry, it still needs to be accompanied by convenience in licensing and technical assistance for both exploration and exploitation, as well as information on potential; especially for entrepreneurs from economically weak groups.

Demand Factors in the Pumice Stone Industry in Indonesia

With the increase in the construction sector and industrial use of pumice in the country, in developed countries and other developing countries, the demand for pumice has been increasing.

In the construction sector, in line with the increase in the population in the country, the need for housing continues to increase, which of course will increase the use of construction goods. For areas that are close to the location where pumice is found, and it is difficult to get bricks and tiles made of red earth, as well as stone for the foundation, pumice stone can be used to replace the construction material.

In recent years, the use of pumice stone for lightweight aggregate, namely roof tile, has been carried out by a building material company in Bogor, West Java, and has resulted in the production of lighter and stronger roof tiles.

In developed countries, the use of lightweight and fire-resistant construction materials for the construction of buildings and housing is increasingly being prioritized. In this case, the use of pumice is very suitable because in addition to being lightweight it is also easy to handle, namely in the form of aggregates with the desired size so as to simplify and speed up the construction process.

Likewise in developing countries, the use of pumice stone for the construction of housing that is easy and cheap and safe has begun to be widely practiced.The increasing public interest in the use of jean textile materials, both at home and abroad, has spurred the jean textile industry to produce on a large scale, so that the use of pumice stone as stonewashing continues to increase. Due to the advantages of pumice properties using other minerals such as pumice compared to using other minerals such as bentonite, zeolite or kaolin, in developed countries, the use of pumice as a filter in the pesticide industry is starting to show an increase.

If using pumice, the pesticide will not sink in water, so it will work relatively more effectively than using bentonite or kaolin, the pesticide will sink quickly and be less effective.

The above conditions are evident from the level of demand (consumption or export) of pumice

which is increasing almost every year. In the pottery type ceramic industry, the use of pumice stone will improve the quality of the ceramic, which is lighter and stronger. However, the use of pumice stone for ceramic materials in the country has not yet been developed and research is still being carried out.

Pumice Price Factors In Indonesia

The structure or trading system that applies to pumice today is still not profitable for pumice mining entrepreneurs. For example, in the West Nusa Tenggara area, in 1991 the price of pumice at the mine site was between Rp. 450 – Rp. 500.00 per sack, and at the processing site it was around Rp. 700.00 per sack. When finished in the process will produce pumice stone of about 30 kg / sack.

Meanwhile, the price of pumice exported, if calculated from the value and volume exported in 1991, obtained a price of Rp. 270.50 per kg. If the price is assumed to be the price to the export destination country, transportation costs, taxes, and insurance, as well as other costs of 40% of the price mentioned above, then the selling price of pumice stone at the exporter’s place is around Rp. 165.00 per kg, or IDR 4,950.00 per 30 kg.

Thus it is clear that the price of pumice at the mine site is very low. In other words, the pumice trading system in Indonesia tends to benefit exporters more than the mining entrepreneurs themselves. Therefore, there is a need for an overhaul in the pumice trading system in such a way, which can further support the improvement of the pumice mining industry, and still benefit all parties.

Pumice Stone Substitution

In its use, pumice can be substituted with other materials. In the construction industry sector, pumice can be replaced by kaolin and feldspar as one of the raw materials for roof tiles, waterways (culverts). For building walls, the use of pumice is competitive from red brick, asbestos, wooden boards, and so on. In the industrial sector,

and as a raw material in the ceramic industry, it can be substituted with bentonite, kaolin, feldspar, and zeolite, which tend to be easier to obtain.

Other Aspects of the Pumice Stone Industry

Other aspects that can affect the mining sector, particularly pumice mining, are:

Land overlapping problem

In fact, there is a lot of potential for pumice found in plantation areas, forestry (protected forests and nature reserves), and other areas, resulting in a conflict of interest, which in the end tends to not be able to exploit the potential for pumice.

Transportation problems

Although the price of pumice is relatively cheaper, because the transportation distance from the location where the pumice is located and the industries that use it is quite far, the industries tend to use other industrial minerals (substitutes).

Potential information and utilization technology

Basically, many investors are interested in the pumice mining industry. However, due to the lack of information about more accurate potential data, these investors did not continue their intentions. Likewise, research and information on technology for the use of pumice in the downstream industry for its users, domestically still needs to be improved again, in order to support the development of the pumice industry in the future.