With plenty of locally available raw materials and energy sources, as well as cheap labour, Indonesia is clearly the most cost-effective base for container glass production in the South East Asia region with a production cost of average grade at US$200/tonne. However, this is not really the full picture and in terms of the real production and quality of the products, the country cannot yet make any major impact on the region's glass container scenario, apart from accounting for a small fraction of total demand. It may be the case that investors did not pick up Indonesia as the country in the region with the most potential because of limited consumption of alcoholic drinks and beverages in the domestic market. Yet, somewhat paradoxically, the investment developments taking place in the sectors of flat glass and glass tableware are more impressive.
