Natural Gas Prices to Rise Again, Ceramic Industry Declares 'SOS'
The Chairman of the Indonesian Ceramic Variety Association (ASAKI), Edy Suyanto, stated the national ceramic industry is in ‘SOS’ or emergency due to high gas prices. Edy complained that gas supplied by state-owned company Perusahaan Gas Negara (PGN) has surged by over 60% in the past six months. “In the past six months, gas prices have risen significantly by over 60%,” he said in a statement on Monday, 25 May 2026.
Edy explained that in early January 2026, the average ceramic industry receiving Certain Natural Gas Price (HGBTU) or subsidized gas paid $9 per million metric British thermal units (MMBTU). However, the HGBTU price from PGN rose to $11 per MMBTU in April. The industry is further hit as PGN announced plans to increase liquefied natural gas (LNG) regasification prices to $15 per MMBTU in June.
“This will cause ASAKI’s average gas purchase price to reach $15 per MMBTU,” Edy said. As the world’s fifth-largest ceramic industry, ASAKI believes it must be supported with affordable gas supply and pricing. “The survival of the ceramic industry depends on uninterrupted gas supply,” he added.
The gas price hike threatens not only the ceramic sector but also the broader national manufacturing industry, which could lose competitiveness and see the Purchasing Managers’ Index (PMI) affected. “This poses a serious threat to domestic industry. Not just ceramics. If left unchecked, it will erode the PMI,” Edy said.
The association also questioned why Indonesia’s natural gas prices are higher than Malaysia and Thailand. In Malaysia, natural gas costs $9.50 per MMBTU, while Thailand pays $9.90 per MMBTU. “Thailand still imports gas. We are producers, not importers. Why is the gas price we receive so uncompetitive?” he asked.
Natural gas is an irreplaceable raw material for the industry. “This began with a gas emergency in August 2025, followed by a sharp drop in HGBT supply to 37.5% in April 2026, making June the ‘gong’ marking the start of the critical phase for the national manufacturing industry,” Yustinus said.