Ceramic Industry Rebounds as Mandatory Standards and Antidumping Measures Drive 2025 Expansion
Key Takeaways
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JAKARTA, Investortrust.id — The national ceramic industry shows a significant rebound in 2025 as government policies on product standards, antidumping, and safeguard measures strengthen competitiveness and expand domestic production. Momentum accelerates as manufacturers increase output and reduce the country’s reliance on foreign supply.
Edy Suyanto, Chairman of the Indonesian Ceramic Industry Association, says these policies deliver a strong multiplier effect across producers. He highlights that the policy mix directly encourages factory expansion and higher labor absorption.
“This year, new production capacity grew by 25 million square meters and created around 1,500 new jobs,” Edy says in a written statement.
The increase in capacity enables domestic factories to replace imported ceramic tiles that previously reached 80 million square meters per year. This marks one of the strongest import substitution shifts in the industry over the past decade.
Edy also notes that importers now collaborate with domestic manufacturers through original equipment manufacturing arrangements. Under this system, importers no longer bring in finished goods but manufacture their own brands inside Indonesia.
“Almost 90 percent of reputable large importers have signed original equipment manufacturing contracts with domestic ceramic producers, and they say they are more satisfied than when they imported directly,” he explains.
The domestic ceramic industry offers several advantages that make original equipment manufacturing increasingly attractive. Stable supply and faster delivery times reduce the risk of delays associated with international shipping and port congestion.
Local manufacturing also provides more stable pricing because costs are not exposed to currency fluctuations. After-sales services and product guarantees are additional advantages that import-based supply chains cannot offer.
These strengths make the domestic ceramic ecosystem more competitive and reinforce import substitution in construction and property-related sectors. Asaki views this development as evidence of effective collaboration between the government, industry players, and market participants.
Edy hopes the government will maintain supportive policies to ensure continued momentum in the coming years. With rising national demand and increasingly capable domestic producers, the ceramic sector is projected to become a key driver of Indonesia’s manufacturing base in 2026.
“Mandatory standards are highly proportional for protecting consumers and represent a policy that supports the long-term advancement of domestic industries,” Edy adds.
Listed Ceramic Companies and Their Valuation
The industry’s rebound also affects ceramic producers listed on the Indonesia Stock Exchange. InvestingPro data shows clear valuation differences across the three main ceramic issuers, reflecting their financial strength, cost structure, and exposure to domestic demand recovery.
PT Arwana Citramulia Tbk (ARNA)
Arwana Citramulia Tbk last traded at Rp 560, while the average fair value calculated by InvestingPro is Rp 755.58, implying an upside potential of 34.9 percent. The company benefits from strong domestic demand, low production costs, and a long-standing reputation for operational efficiency. InvestingPro models point to attractive valuation multiples, robust free cash flow, and a net cash position that reinforces the company’s capacity to maintain healthy dividends.
Disclaimer: Valuation figures, fair value estimates, and financial metrics referenced in this article are based on the latest available InvestingPro data at the time of writing. Market prices, financial conditions, and model outputs may change without notice. This information is provided solely for analytical and informational purposes and does not constitute investment advice, a recommendation to buy or sell securities, or a substitute for independent financial judgment.
In addition, Arwana has executed aggressive share buyback programs, which enhance earnings per share and improve shareholder returns. With lower exposure to import competition and rising demand from original equipment manufacturing contracts, nine InvestingPro valuation models identify Arwana as one of the sector’s strongest beneficiaries in 2025.
PT Cahayaputra Asa Keramik Tbk (CAKK)
Cahayaputra Asa Keramik Tbk last traded at Rp 177, whereas InvestingPro estimates its fair value at Rp 132.42, signaling a potential downside risk of 25.2 percent. The company faces pressure from a heavy debt burden and weak profitability, and InvestingPro highlights concerns related to its ability to service interest payments and its inconsistent operating cash flow.
Disclaimer: Valuation figures, fair value estimates, and financial metrics referenced in this article are based on the latest available InvestingPro data at the time of writing. Market prices, financial conditions, and model outputs may change without notice. This information is provided solely for analytical and informational purposes and does not constitute investment advice, a recommendation to buy or sell securities, or a substitute for independent financial judgment.
Although rising domestic demand and falling import volumes could offer some support, Cahayaputra must strengthen its financial structure to seize the recovery momentum in the ceramic industry. Five InvestingPro valuation models place the company’s intrinsic value below its current market price, indicating continued near-term valuation risks.
PT Keramika Indonesia Assosiasi Tbk (KIAS)
Keramika Indonesia Assosiasi Tbk last traded at Rp 21, while InvestingPro’s average fair value estimate stands at Rp 23.10, reflecting an upside potential of around 10 percent. The company maintains a stronger cash position relative to its debt and trades at a low price-to-book valuation. However, profitability remains weak despite recent improvements in industry dynamics.
Disclaimer: Valuation figures, fair value estimates, and financial metrics referenced in this article are based on the latest available InvestingPro data at the time of writing. Market prices, financial conditions, and model outputs may change without notice. This information is provided solely for analytical and informational purposes and does not constitute investment advice, a recommendation to buy or sell securities, or a substitute for independent financial judgment.
Eight InvestingPro valuation models suggest that the company’s fair value is only slightly above the current market price, pointing to moderate potential gains. Higher factory utilization and the ongoing reduction of imported ceramic products could help improve margins, although operational execution remains critical.