The domestic ceramic industry has been able to be self-sufficient and meet domestic needs with a production capacity of 650 million square meters, with this abundant production capacity, the government's 3 million housing units program can be realized.
Chairman of the Indonesian Ceramic Industry Association (Asaki) Edy Suyanto said the ceramic industry can substitute imports, and is ready to support any government program including the 3 million housing units program.
"I am proud to say this, the ceramic industry has entered national ceramic self-sufficiency and is ready to become the backbone of the building material needs of government projects," he said when met at the Kadin Focus Group Discussion on Natural Gas Sustainability for Industry, at the Kadin Tower, Jakarta, (7/9/2025).
Although the ceramic industry has been able to become self-sufficient, businesses still need support from the government for business sustainability. Two forms of support requested are the smooth supply of natural gas and protection from imported products that are still increasing.
Gas supply to the ceramic industry under the industrial gas subsidy program or specific natural gas price (HGBT) in West Java and East Java is still not optimal. As a result, some industry players have to buy gas at high prices through an additional distribution cost scheme, which makes production costs increase significantly.
Asaki highlighted the impact of global competition following the tariff war between the United States and a number of countries. This condition has caused imported ceramic products, especially from India, to increasingly flood the Indonesian market.
Therefore, his party proposes that the government consider implementing a domestic market obligation (DMO) policy for the natural gas sector, as is applied to the coal commodity.
According to the association, the policy can help maintain the stability of energy supply and prices for the domestic industry, which can help maintain the competitiveness of Indonesian ceramic products.
In the first half of 2025, the resilience or utilization rate of the ceramics industry rose to 71 percent compared to 60 percent in the same periodyear on year (YoY).
The increase in utilization also had an impact on domestic ceramic production, which increased by around 62 million square meters or grew 16.5 percent.
Less Reliance on Raw Material Imports from China
Edy said the ceramic industry in Indonesia is not too dependent on imports of raw materials from China, because Indonesia itself has raw materials such as soil and supports the pigment and feldspar industries.
Nonetheless, there are some ceramic manufacturers in Indonesia that choose to use raw materials from China because the price is cheaper.
"Not all raw materials are imported from China, only some members, not all," he said.
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From other companies, PT Intikeramik Alamasri Industri (IKAI) continues to make significant achievements in the manufacturing sector with a production target of 1.5 million square meters by 2025, a considerable jump compared to the production achievement of 1 million square meters in 2024.
To support this expansion, IKAI has prepared a capital expenditure (capex) budget of Rp 40 billion, with most of the funds to be allocated for the development of the manufacturing sector, including the addition of new production lines.
IKAI's President Director, Yohas Raffli, explained that one of the company's flagship products, Smooth Grip Porcelain Tiles has recorded a remarkable sales growth of 185% in one year.
"This product, which features No Slip Resistance technology and a premium, nature-inspired design, has become a top choice for architects and developers, given the combination of safety and aesthetics it offers," he said in a financial report (9/10).
SNI makes ceramic industry competitive
Deputy Minister of Industry Faisol Riza said the implementation of mandatory Indonesian National Standards (SNI) for the ceramics industry will directly make the sector more competitive.
Faisol said the ceramics and non-metallic minerals industry is a sector that plays a strategic role in supporting national infrastructure, property and manufacturing development.
Therefore, to address challenges such as fluctuations in raw material and energy prices, as well as environmental pressures from export markets in this sector, a comprehensive transformation including digitization of services and implementation of Indonesian National Standards is needed.
He noted that the national ceramic industry currently has an installed production capacity of 625 million square meters per year.
"With this capacity, the domestic industry is actually able to fully meet national ceramic needs without having to rely on imports," he said in a press release received by SUAR in Jakarta (9/10).
The utilization rate of the national ceramic industry showed a positive trend throughout the beginning of 2025. Utilization of the national ceramic sector in the first quarter of 2025 has increased to 75 percent, which was previously 60 percent in 2024. This improved performance cannot be separated from the synergy of various related stakeholders through the implementation of strategic policies.
These policies include the implementation of Safeguard Measures Import Duty (BMTP), Anti Dumping Import Duty (BMAD), the application of Specific Natural Gas Prices (HGBT), certification of the Domestic Component Level (TKDN), and the implementation of mandatory SNI certification in the ceramics sector, which are the main pillars in strengthening the competitiveness of this industry.
Ceramic Industry is a Strategic Industry
Institute for Development of Economics and Finance (INDEF) Senior Economic Analyst Aviliani said the ceramic industry is a strategic industry that deserves gas supply and affordable natural gas prices.
The ceramics industry is dependent on the Specified Natural Gas Price (HGBT) as natural gas is a significant component of production costs, around 30%.
The HGBT policy aims to reduce energy costs for the ceramics industry to increase competitiveness and support economic growth, but the industry is experiencing problems due to quota restrictions and insufficient supply of HGBT gas.
"The ceramic industry is a strategic industry that can support government infrastructure projects, so its performance must be maintained," he said when met at the Kadin Tower (7/10/2025).
