Naturally, gypsum occures as a sulphate mineral containing water of crystallization. Gypsum is used widely in industrial, construction and medical sectors. Anhydrite as its name implies is the sulphate without water of crystallization. In addition anhydrite is found in association with gypsum. Recently, domestic gypsum end-users show some significant increase, particularly in portland cement industry. This could have improved the supply and demand for gypsum In the 1980-1989 period, although the natural gypsum production was still small in quantity, it increased by 13.38 % per annum. In 1980 its production was 850 tons reached 1,449 tons by 1989. Since 1985, synthetic of gypsum was produced as by-product from manufacturing of phosphoric acid in PT Petrokimia and other chemical industries. Synthetic gypsum production was 134,535 tons and increased to 420, 788 tons by 1989 (almost on full,_
capacity). Gypsum consumption grew at 10. 74 % per annum. In 1980 the consumption was 177,672 tons, increased to 443.506 tons by 1989. The largest gypsum consumer is portland cement industry. To provide gypsum for domestic demand, Indonesia still imports a part from other countries. Imported gypsum decreased 4.96 % per annum, from 318,606 tons by 1980 to 144,394 tons by 1989. Meanwhile export of gypsum, which started in 1985 until 1989 increased from 1,839 to 110,753 tons. The gypsum price was improved to reach the average growth rate of 5.49 % (current price).
Until 1995, the gypsum industry is estimated to remain unchanged, it is caused by the constraint of deposits and installed capacity of gypsum synthetic production. The gypsum production is predicted to reach about 441,800 443,000 tons. In fact, for adding the cement production capacity until the end of the fifth five year development (Felita V), gypsum consumption is to reached about 540,000 to 816,000 tons. Imported gypsum is estimated to increase at about 199,500 to 260,000 tons. Indonesia is not capable of exporting gypsum for the coming few years, because the whole domestic gypsum production would be fulfiling the domestic demand. Gypsum price is estimated to be about Rp 49,000-57,000 per ton.
Exploration and inventory activities •• of gypsum deposits, and development as well as research of other sources for manufacturing gypsum synthetic, should be extended to support the development of gypsum industry in the future. In this case, the Government should also take a part in all activities which have relation to the development of gypsum industry.

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