Gas Supply Drops, Ceramics Industry Burdened by Prices Double the Cap

The Chairman of the Indonesian Ceramic Industry Association (Asaki), Edy Suyanto, stated that the ceramics industry is now shouldering an average gas price of US$15-16 per MMBTU. This figure is more than double the specified natural gas price (HGBT) of US$7 per MMBTU.

According to Edy, the cost surge is occurring because gas supply from PGN continues to decline. Throughout January to May 2026, the allocation of specific industrial gas (AGIT) from PGN only reached 47.5 percent. The remainder had to be met through regasified LNG at a much more expensive price of around US$20.5 per MMBTU.

With these conditions, Edy stated that the ceramics industry must pay for gas at an average range of US$15-16 per MMBTU. This burden is expected to continue eroding competitiveness and reducing production capacity utilisation.

Edy emphasised that Asaki is not only fighting for competitive gas prices but also for the sustainability of the national ceramics industry, investment, and jobs. The ceramics industry under Asaki employs around 150,000 workers.

‘We are not asking for special privileges. We only hope to obtain a gas supply with competitive pricing so we can continue to grow, absorb labour, and contribute to the national economy,’ Edy said.

Asaki hopes industrial gas prices can be in the range of US$7-9 per MMBTU, equivalent to industrial gas prices in Malaysia and Thailand. This price level is considered crucial for the national ceramics industry to remain competitive, especially amid import pressures from China and India.

Edy concluded that this target price should be achievable with an AGIT allocation of 80 percent, with the remainder using regasified LNG pricing.