Ceramic industry urges stable gas supply to sustain growth
JAKARTA — The Indonesian Ceramic Industry Association (ASAKI) is urging the government to ensure a stable gas supply and affordable pricing to maintain the growth of the national ceramic industry.
ASAKI Chairman Edy Suyanto stated on Monday in Jakarta that the ceramic industry’s continuity heavily depends on stable natural gas supply, as it cannot be substituted by other energy sources in the production process.
‘The lifeline of the ceramic industry lies in gas supply; it must be supported by a steady gas supply. Why? Because gas is irreplaceable for the ceramic industry. The industry’s survival hinges on uninterrupted gas supply,’ he said.
Edy added that the national ceramic industry, one of the world’s top five largest strategic sectors currently in an expansion phase, requires support in terms of gas supply availability and affordable pricing.
He noted the sector faces challenges from a planned increase in LNG regasification prices by gas distributors from June, rising from $14.9 to between $21 and $25 per MMBTU.
Edy explained that the average gas purchase price for ceramic industry recipients of the Specific Natural Gas Price (HGBT) was $9 per MMBTU in early January 2026, rising to $11 per MMBTU in April 2026.
However, the LNG regasification price hike in June is expected to push the average ceramic industry gas purchase price to around $15 per MMBTU.
‘This means gas prices will surge by over 60% within six months,’ Edy clarified.
He added that the gas price increase would not only affect the ceramic industry but the broader national manufacturing sector.
Edy also highlighted that Indonesia’s gas prices remain higher than those in neighbouring countries such as Malaysia and Thailand, which are at $9.5 and $9.9 per MMBTU respectively.
ASAKI, Edy added, has submitted a formal objection to the relevant company directors regarding the planned price hike, but has yet to receive a response.
Furthermore, the Gas Users Industry Forum (FIPGB), comprising around 20 gas-consuming industries, has also sent a letter to the government seeking attention and assistance on industrial gas pricing issues.
Edy warned that the situation has reached an emergency stage for the national industry if the government does not swiftly resolve gas pricing and supply issues.
Meanwhile, FIPGB Chairman Yustinus Gunawan stated that the surge in industrial gas prices from June could put pressure on the real manufacturing sector.
This is because natural gas is an irreplaceable raw material and energy source underpinning the national economy.
Previously, ASAKI revised the national ceramic industry’s utilisation target for this year from 80% to around 73-75%.
The Ministry of Industry (Kemenperin) noted that the national ceramic industry’s installed production capacity currently stands at approximately 650 million square metres per year, with a projected utilisation rate of 73% in 2025, supporting around 150,000 jobs.