The Indonesian ceramic industry is currently facing significant challenges due to high industrial gas prices and a surge in imported ceramics from India. The Association of Various Indonesian Ceramic Industries (Asaki) reports that industry utilization in the first half of 2025 was stuck at 71%, below the target of 75%. A key issue is the cost of gas from PT Perusahaan Gas Negara Tbk. Although the ceramic industry is entitled to a subsidized gas price of US$6.5 per mmbtu (One million British thermal units), the Ministry of Energy and Mineral Resources limits this special pricing to only 78% of the industry's needs in western Java. Adding to the pressure, imports of Indian ceramics increased by 150% year-on-year from January to April 2025, flooding the Indonesian market with cheaper products. This influx follows a 26% tariff imposed by the U.S. government on Indian products, making them 36% more expensive in the U.S. when including a universal 10% tariff, potentially redirecting more Indian ceramics to other markets like Indonesia. To counter these challenges, Asaki chairman Edy Suyanto is urging the government to accelerate the "3 million houses program" in the second half of the year. This program is expected to boost national ceramic industry utilization from 70% to 80% by creating new demand for ceramic tiles, roof tiles, and sanitary products. Edy estimates this program could absorb 106 million square meters of ceramics, nearly 60% of the national industry's installed capacity. While an increased budget for home renovation programs will provide some relief, its impact is expected to be minimal compared to the potential of the 3 million houses initiative. (ICE GIACARTA)

Fonte notizia: 02/07/2025 - Katadata News