JAKARTA, RAKYAT NEWS – Indonesia’s ceramic industry is set for a significant boost as the Indonesian Ceramic Industry Association (Asaki) announces a second-phase expansion worth Rp4 trillion. This move comes after the government renewed its commitment to subsidize industrial gas prices, providing much-needed stability for the sector.

The expansion is expected to increase domestic ceramic tile production capacity by 45 million square meters and create thousands of new jobs, marking a pivotal moment for the industry’s growth and competitiveness.

The renewal of the Specific Natural Gas Price (HGBT) policy has been a game-changer for the industry. The policy, which ensures affordable gas prices for industrial use, has been extended following the issuance of Ministerial Decree No. 76K/2025 by the Ministry of Energy and Mineral Resources (ESDM). This decision has provided a strong foundation for Asaki’s expansion plans, as affordable energy costs are critical for maintaining the competitiveness of Indonesia’s ceramic industry on the global stage.

The Rp4 trillion investment is expected to generate 5,000 new jobs, providing a significant boost to the local economy. Asaki Chairman Edy Suyanto emphasized that the expansion will not only increase production capacity but also strengthen Indonesia’s position as a key player in the global ceramic market. The project is slated for completion by the second half of 2026, with the potential to further reduce the country’s reliance on ceramic imports.

The HGBT policy has already proven its effectiveness in driving industry growth. Between 2020 and 2024, the policy facilitated a 90 million square meter increase in ceramic tile production capacity and attracted Rp23 trillion in foreign direct investment (FDI) for two new sanitaryware factories. Additionally, the industry created 15,000 jobs during this period, demonstrating the policy’s multiplier effect on economic growth and employment.

YouTube player