By: Saleh Husin, Vice Chairman for Industry Affairs, Indonesian Chamber of Commerce and Industry (Kadin Indonesia)

Jakarta – Government development programs currently underway, such as the People’s School initiative and the plan to build three million homes, certainly bring fresh optimism to Indonesia’s domestic ceramic industry. It is important to note that local ceramic products are now highly competitive with imported products in terms of quality, standards, and design. This can be seen from the products showcased at the Indonesian Ceramic Exhibition held at the Nusantara International Convention Exhibition (NICE) Pantai Indah Kapuk (PIK) 2, North Jakarta, from June 4–7, 2026.

Yesterday, I had the opportunity to visit the exhibition and engage in direct discussions with business owners and executives from various leading domestic ceramic manufacturers, as well as representatives of the industry’s umbrella organization, the Indonesian Ceramic Industry Association (ASAKI).

In my view, this industry has developed remarkably well, creating employment opportunities and generating significant added value for our nation. We must ensure that this industry does not decline or become overwhelmed by imported products due to excessively high energy costs.

At present, the domestic ceramic industry is facing a serious challenge: industrial gas prices have reached unreasonable levels. Although the ceramic industry is among the sectors eligible for the government’s Specific Natural Gas Pricing (HGBT) scheme of US$7 per MMBTU (Million British Thermal Units), in practice manufacturers are currently receiving only 40 percent of their gas allocation at the HGBT rate. The remaining 60 percent must be purchased at the market price, which has risen to approximately US$21 per MMBTU.

This situation places a tremendous burden on the industry and threatens to undermine the competitiveness of domestic ceramic manufacturers. If left unresolved, companies may be forced to halt production, ultimately leading Indonesia to become a net importer of ceramic products despite possessing abundant raw material resources. This is a scenario that must be avoided.

For this reason, strong government support and policy alignment are urgently needed to ensure that Indonesia’s ceramic industry can remain competitive and become the dominant player in its own domestic market.