Gas uncertainty puts Rp12 trillion Indonesian ceramics expansion on hold
Industry association Asaki says the planned capacity increase could create 7,000-8,000 jobs, but producers are reassessing investment plans.
Indonesia’s ceramics producers have put a planned Rp12 trillion expansion on hold as uncertainty over natural gas supplies disrupts investment decisions, according to industry association Asosiasi Aneka Keramik Indonesia (Asaki). The phased expansion had been scheduled to run through the first half of 2028.
Asaki chairman Edy Suyanto told CNBC Indonesia on 16 October 2026 that producers had returned to a wait-and-see position after gas supply problems emerged in September. The expansion would add 110 million square metres of production capacity and was expected to create about 7,000-8,000 jobs.
The investment calculations depended on predictable energy costs and supply volumes. Edy said the industry could remain competitive with average gas prices of around US$8 to US$8.5 per MMBTU. Supply uncertainty has left companies reassessing long-term commitments while operating conditions remain unstable.
A further development phase envisages about 120 million square metres of additional capacity, requiring an estimated Rp12 trillion-Rp15 trillion. That phase could take national ceramics capacity to 850 million-870 million square metres.
Edy said reliable energy supplies would allow ceramics producers to support economic growth and expand employment. He also noted that some employees had already been furloughed amid the industry's difficulties.
