Indonesia Ceramic Industry Utilisation Falls Below 70% on Gas Curbs

Indonesia ceramic industry utilisation fell below 70% in October 2026 because of gas supply restrictions, after reaching 75% in January to August. The Indonesian Ceramic Industry Association (ASAKI) says about 1,400 employees have been affected: around 500 were laid off in July and around 900 are currently furloughed. The government says it will push for gas certainty, while Chinese ceramics already face 20–25% anti-dumping duties and India will be investigated.
The news matters to contractors, building-material shops and homeowners planning tile and granite purchases for year-end projects. Below is a summary of the facts reported on 16 and 21 October 2026, with homeX notes on what buyers can do.
Indonesia ceramic industry utilisation in 2026: from 75% to below 70%
- January–August 2026: utilisation 75%, up from 73% in 2025. The start-of-year target was 78–80%.
- October 2026: utilisation dropped below 70% due to limits on gas use.
- November–December: ASAKI chairman Edy Suyanto expects a further fall, possibly to about 60%, if the restrictions continue.
- Workforce: about 1,400 employees affected; furloughed staff could become layoffs.
- Installed capacity 2026: 686 million m2; Indonesia is now the world's fifth-largest ceramic producer, up from seventh.
ASAKI says it reported the problem to the Ministry of Industry in mid-September, but supply disruption continued into October. At the same time, ASAKI is still preparing a second expansion phase for 2026–2028 of 110 million m2, with about Rp12 trillion of investment that could create 7,000–7,500 new jobs, and says Indonesia could overtake Vietnam as the world's fourth-largest producer if gas supply is smooth. In other words, the current problem is energy supply rather than market demand.
US$11 gas and ASAKI's three proposals
According to ASAKI, the average gas price paid by the industry in October reached US$11 per MMBTU, although under Energy Ministerial Decree No. 281.K of 2026 the price for HGBT recipients should be about US$8–8.5 per MMBTU, with allocations covering only about 73% of needs. ASAKI proposes faster domestic market obligations (DMO), gas import permits for PGN when supply falls short, and higher priority for ceramics in gas allocation. We covered the gas price in a separate article; the focus here is the impact on output and jobs.
Anti-dumping: China 20–25%, India to be investigated
Industry Minister Muhammad Sarmuji said after meeting ASAKI on 21 October 2026 that Chinese ceramics already carry anti-dumping duties of 20–25%, and he asked the Indonesian Anti-Dumping Committee (KADI) to investigate possible dumping from India. If proven, the ministry will propose duties in line with the dumping margin found. Import relaxation will only be considered for ceramic types not yet produced domestically.
What it means for buyers and suppliers
At the time of writing we found no official announcement of higher tile selling prices. However, lower production can make certain designs or sizes sell out faster. For large projects, order early, get single-batch stock confirmed in writing and prepare alternative designs. For exporters and overseas suppliers, especially from China, anti-dumping duties and stricter SNI rules mean the landed price in Indonesia must be fully calculated before quoting local distributors.
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FAQ
What is Indonesia ceramic industry utilisation now? According to ASAKI, below 70% in October 2026, down from 75% in January–August 2026, and possibly about 60% in November–December if gas limits continue.
How many ceramic workers are affected? ASAKI counts about 1,400 employees: around 500 laid off in July and around 900 furloughed as of mid-October 2026.
What is the anti-dumping duty on Chinese ceramics? The industry minister cited 20–25% (21 October 2026); suspected dumping from India has been referred to KADI for investigation.
Indonesia ceramic industry utilisation: related articles and products
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- Ceramic Tile Prices Indonesia: US$11 Gas Hits Makers as ASAKI Plans 110 Million m² Expansion
- Guide: Exporting Chinese Building Materials to Indonesia 2026
- Tile Factories in Indonesia: Ceramic & Granite Brands, Makers, Addresses
- KW1, KW2, KW3 Ceramic Tiles in Indonesia: Meaning, Price Gap and Checks
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Sources (checked 24 October 2026): CNBC Indonesia, 16 Oct 2026 — 900 ceramic workers face layoffs (Indonesian); CNBC Indonesia, 21 Oct 2026 — ceramic makers take gas issue to industry minister (Indonesian); Bloomberg Technoz, 21 Oct 2026 — minister to review anti-dumping duties and gas supply (Indonesian).