Asaki Pushes for Implementation of Gas DMO to Safeguard Contribution to the Economy
Jakarta (ANTARA) - The Indonesian Ceramic Industry Association (Asaki) is pushing the government to implement a domestic market obligation (DMO) policy for natural gas commodities to maintain the sustainability of the ceramics industry and its contribution to the national economy.
Asaki General Chairman Edy Suyanto, in a confirmed statement in Jakarta on Tuesday, said the policy is needed given the sector’s multi-layered pressures, such as gas supply disruptions, surges in energy costs, and increasing import pressures.
The association noted that the production utilisation rate for this sector in the first quarter of 2026 was around 70-72 percent, missing the 80 percent target.
“These gas supply disruptions have a direct impact on factory operations and industrial productivity,” Edy said.
In such conditions, Asaki emphasised the importance of a natural gas DMO policy to better guarantee energy supplies for domestic industries.
Additionally, reducing the export portion of gas is deemed necessary to maintain national energy resilience.
“Natural gas should be prioritised for domestic industrial needs that have a significant multiplier effect, such as job absorption and encouraging new investments,” he stressed.
On the other hand, he said, global dynamics are adding pressure, as geopolitical conflicts in the Middle East could affect economic stability, particularly for Indonesia, which still relies on energy imports.
Previously, the Ministry of Industry (Kemenperin) recorded that the installed production capacity of the national ceramics industry currently stands at 650 million square metres per year, with an estimated production utilisation rate of 73 percent in 2025, and absorbing 150,000 workers.
The positive performance of the national ceramics industry aligns with the achievements of the manufacturing sector, which remains the main driver of the national economy.
Throughout the first to third quarters of 2025, the non-oil and gas processing industry (IPNM) grew by 5.17 percent and contributed 17.27 percent to the national gross domestic product.
From the trade perspective, IPNM contributed 80.27 percent to total national exports and absorbed up to 20.26 million workers.
Kemenperin believes the domestic ceramics industry can become one of the world’s top four producers.