Granite Tile Entrepreneurs Anticipate Profits from 3 Million Houses Programme
Low factory utilisation has become a primary concern for industry players recently. In the ceramics industry as a whole, production utilisation stood at 65% in 2024, rising to 73% in 2025. ASAKI estimates that this utilisation rate will continue to increase towards 2026.
“ASAKI targets ceramic production utilisation to reach 75%-80% in the second semester of 2026,” said Edy Suyanto, Chairman of the Indonesian Ceramic Multi-Industry Association (ASAKI), in a statement quoted on Wednesday (2/9/26).
Several government policies and programmes under President Prabowo’s administration are considered to have the potential to drive ceramic demand. These programmes include the construction and renovation of ‘Sekolah Rakyat’ (People’s Schools), roofing initiatives, the development of Nutrition Fulfilment Service Units (SPPG), the Red and White Village Cooperatives (Kopdes), the renovation of uninhabitable houses, and the 3 million houses construction programme.
Nevertheless, some manufacturers in the granite tile industry are recording factory utilisation rates nearing 100%. This disparity indicates that there is still significant room for the utilisation of national manufacturing capacity.
“Current production capacity reaches 24 million square metres per year. The utilisation rate of PT Superior Porcelain, which produces Alila Granite Tile, currently reaches almost 100%, with a production growth target for Alila Granite Tile of 10% per year,” said Frankie Irawan, Sales Director of Alila Granite Tile, to CNBC Indonesia on Wednesday (2/9/26).
Domestic market conditions are also supporting production activities in the ceramics and granite tile industries. Changes in import policies since last year have increasingly directed domestic market needs towards the capabilities of local producers.
“Because since January 2025, the import of granite tiles is no longer permitted, all domestic needs are automatically met by local producers,” said Frankie.
However, the increase in domestic demand is accompanied by production cost challenges. Energy, raw materials, and logistics are several components that can affect product selling prices. Meanwhile, the weakening of the rupiah has different impacts on the domestic and export markets.
“The influence of energy, raw material, and logistics costs is certainly very significant on the price of local granite, which will drive up selling prices, an effect that is very much felt in the domestic market. On the other hand, the weakening of the rupiah exchange rate makes local product prices cheaper in the international market, which will force producers to begin increasing exports abroad,” he added.
In terms of demand, the housing sector is one of the markets with the potential to absorb more building material products. The government is currently pushing the 3 Million Houses Programme. Companies have begun exploring opportunities to supply government project needs. One such step was taken through participation in the Danantara Housing Expo 2026, held from 27-30 August 2026 at NICE, PIK 2, Tangerang, Banten.
“Currently, we have begun exploring entry into government projects, including the 3 Million Houses Programme, one way of which was through our participation in the Danantara Housing Expo which has just concluded,” said Frankie.
Despite some manufacturers recording high utilisation, the average utilisation rate for manufacturers in Indonesia is still considered low. The Ministry of Industry noted that non-oil and gas processing industry utilisation has only reached 64.8%, far below the level deemed ideal by the government.
“Non-oil and gas processing industry (IPNM) utilisation is still at 64.8%, and this is a figure we need to increase. We need to raise it to a minimum range of 70% or more,” said Minister of Industry Agus Gumiwang Kartasasmita during a working meeting with Commission VII of the Indonesian House of Representatives (DPR RI) on Monday (31/8/26).