Ceramic Industry Stresses Importance of Gas Supply to Maintain Utilisation

The Indonesian Ceramic Industry Association (Asaki) has stressed the importance of guaranteed gas supply to maintain competitiveness, sustain production utilisation rates, and prevent layoffs. Asaki Chairman Edy Suyanto stated that the continuity of competitively priced energy supply is a key factor for the industry to operate optimally, absorb labour, and contribute to the national economy. He revealed that the realisation of the Specific Industrial Gas Allocation (AGIT) from January to May 2026 only reached 47.5 per cent. This condition forces the industry to meet its energy needs through LNG regasification, which carries a much higher price. According to Edy, the current price of regasified LNG is around 20.5 US dollars per MMBTU. Consequently, the ceramic industry must bear an average gas cost of approximately 15–16 US dollars per MMBTU, nearly double the industrial gas subsidy provided through the Specific Natural Gas Price (HGBT) of 7 US dollars per MMBTU. He added that, based on information received by industry players, AGIT realisation in June 2026 could potentially drop to below 30 per cent. Edy noted that the industry’s main concern is not only price but also the certainty of energy supply to support factory operations. The ceramic industry under ASAKI currently supports large investments and employs around 150,000 workers. “We are not asking for special privileges. What is needed is certainty of gas supply availability at a competitive price so that the industry can grow, absorb labour, and continue contributing to the national economy,” he said. ASAKI believes the industry can still maintain competitiveness if the average gas price is in the range of 7–9 US dollars per MMBTU, equivalent to industrial gas prices in neighbouring countries such as Malaysia and Thailand. This target is considered achievable if AGIT is realised at a minimum of 80 per cent and the remainder is met through LNG. Similarly, Yustinus Gunawan, Chairman of the Natural Gas Industrial Users Forum (FIPGB), emphasised that gas supply certainty is an urgent need for the manufacturing sector. He stated that current supply uncertainty is beginning to disrupt industrial production activities. “The only way is to realise natural gas supply at a minimum of 80 per cent of the volume stipulated in the Minister of Energy and Mineral Resources Decree Number 76.K/2025,” he said. Yustinus mentioned that information received by industry players indicates current AGIT realisation is only about 27.5 per cent of the established allocation. Meanwhile, gas usage outside AGIT is charged at a rate of around 20 US dollars per MMBTU as of June 2026. Previously, Deputy Speaker of the Indonesian House of Representatives Sufmi Dasco Ahmad directly telephoned the President Director of PT Pertamina (Persero), Simon Aloysius Mantiri, after receiving information about potential layoffs of ceramic factory workers in Bekasi, West Java, due to expensive industrial gas. The moment occurred when Dasco attended the National Working Meeting of the Indonesian Workers Union Confederation (KSPI) in Jakarta on Tuesday (23/6). He called Simon moments before delivering his speech at the event. Dasco conducted the phone conversation while holding his device close to the microphone, allowing the audience to hear the discussion. During the call, the Pertamina President Director stated he would immediately coordinate with PT Perusahaan Gas Negara (PGN) Tbk to address the issue. “Ready, Mr Dasco, I will certainly coordinate immediately with PGN and from our side, our commitment is that we will make adjustments,” Simon said during the phone conversation. Dasco conveyed that there is a threat of layoffs for 55,000 employees at several ceramic factories in Bekasi due to the high cost of industrial gas. He assured that a solution to the problem would be sought.