Ceramic Industry Pushes for Domestic Market Obligation on Natural Gas
The Indonesian Ceramic Industry Association (Asaki) is pushing the government to implement a domestic market obligation (DMO) for natural gas commodities to maintain the sustainability of the ceramic industry and its contribution to the national economy.
Asaki General Chairman Edy Suyanto stated that the policy is needed because the sector is facing multiple pressures, such as gas supply disruptions, surges in energy costs, and increasing import pressures. Asaki noted that the production utilisation rate for this sector in the first quarter of 2026 was around 70-72 per cent, missing the 80 per cent utilisation target.
“Gas supply disruptions have a direct impact on factory operations and industrial productivity,” said Edy in a confirmed statement in Jakarta on Tuesday, 24 March 2026.
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 large multiplier effect, such as job absorption and encouraging new investments,” he said.
On the other hand, he added, global dynamics are also adding pressure, given that geopolitical conflicts in the Middle East could potentially affect economic stability, particularly for Indonesia, which still relies on energy imports.
Previously, the Ministry of Industry recorded that the installed production capacity of the national ceramic industry currently reaches 650 million square metres per year, with an estimated production utilisation rate of 73 per cent in 2025, and absorbing 150,000 workers.
The positive performance of the national ceramic 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 per cent and contributed 17.27 per cent to the national gross domestic product.
From the trade side, IPNM contributed 80.27 per cent to total national exports, and absorbed up to 20.26 million workers. The Ministry of Industry believes the domestic ceramic industry can become one of the world’s top four producers.