Indonesia Ceramic Industry Rebounds as Production Jumps 15% in 2025

JAKARTA, Investortrust.id — Indonesia’s ceramic industry rebounds in 2025 as production rises 15 percent and capacity utilization climbs to 73 percent, marking a turnaround after years of energy cost pressures and import competition. The improvement reflects stronger domestic demand and the impact of trade protection policies.

The Indonesian Ceramic Industry Association (Asaki) said national ceramic production reached 474.5 million square meters in 2025, up around 62 million square meters from the previous year as utilization rose from 66 percent in 2024. The association said higher factory activity signaled renewed confidence among manufacturers.

Chairman of Asaki Edy Suyanto said Indonesia recorded a rare global achievement in 2025. “Indonesia became the only ceramic-producing country in Asia, Europe, and the Americas that managed to post both higher production utilization and increased capacity in 2025,” he said in a written statement on Saturday, Jan 3, 2026.

The rebound followed a difficult period in 2024, when seven ceramic producers stopped operations as production costs surged. Chairman of the Industrial Development Task Force at the Industry Ministry Ashady Hanafie said at that time gas pricing played a major role.

Ashady said the pressure intensified as gas prices rose in key industrial regions. “In western Java, prices increased from $6 per MMBTU to $6.5 per MMBTU, while eastern Java rose from $6 per MMBTU to $6.32 per MMBTU,” he said, adding that higher logistics costs also eroded competitiveness.

Edy said government intervention began to reverse the downturn through trade safeguards and mandatory standards. “Anti-dumping measures, safeguards, and mandatory national standards have proven effective in protecting the domestic ceramic industry amid global pressure,” he said.

He said energy policy support was also critical for recovery. “The extension of the specific natural gas price policy, mandatory ceramic standards, and the planned import entry-point policy have been very helpful, and the minister is willing to listen directly to industry complaints,” Edy said, referring to Industry Minister Agus Gumiwang Kartasasmita.

Momentum strengthened toward the end of 2025 as utilization rose from 75 percent in October to 78 percent in December. Edy said the outlook for next year remained optimistic. “In 2026, we project utilization to reach 80 percent with production of around 537 million square meters,” he said.

He said the upside could be significantly larger if housing construction accelerated. “If the three-million-housing program runs optimally, utilization could jump from the 80 percent target to as high as 96 percent,” Edy said.

However, Edy warned that risks remained from energy supply and imports. “In western Java, the ceramic industry only receives around 60 percent of gas supply, while eastern Java gets about 50 to 55 percent at a price of $7 per MMBTU,” he said.

He also pointed to a surge in imports in 2025. “Imports from India rose 55 percent, Vietnam 32 percent, and Malaysia jumped 210 percent,” Edy said, adding that Asaki would work with the Indonesian Anti-Dumping Committee to pursue a dumping investigation into Indian ceramic products in the first half of 2026.