JAKARTA - The Indonesian Ceramic Industry Association (Asaki) is preparing a new investment plan worth Rp5 trillion in 2026 as an effort to spur capacity increases and create jobs.
Asaki Chairman Edy Suyanto said that through the investment plan, the national ceramics industry is optimistic that it can reach production utilization of up to 80 percent by 2026, the highest in the last decade.
In terms of capacity, Asaki projects that the installed capacity of national ceramic tiles will continue to increase.
In 2026, installed capacity is expected to reach 672 million square meters per year, increasing to 701 million square meters per year in 2027, and reaching 720 million square meters per year in 2029.
Edy who was re-elected as the Chairman of Asaki for the 2026-2029 period also mentioned that the national ceramic industry plans to expand production capacity by 70 million square meters per year, as well as absorbing around 3,500 new workers.
The target, according to him, is considered realistic in light of government policy support, increased installed capacity, and the prospect of domestic consumption growth which is still wide open.
"This target is realistic with the note that the government's policy support remains consistent and the industry's structural problems are immediately resolved," said Edy.
He said the association assessed the revival of the ceramic industry was inseparable from various strategic government policies, ranging from the application of anti-dumping and safeguard ceramic import duties, the implementation of mandatory SNI, the 3 million housing development program, the government-funded VAT incentive (DTP) for the property sector, a reduction in bank interest rates, to the FLPP program of 350,000 housing units.
Various policies are believed to be able to significantly boost domestic ceramic demand.
However, he continued, the per capita consumption rate of ceramics in Indonesia is still relatively low.
In 2029, consumption is estimated to reach only 2.5 square meters per capita, lagging behind China and Vietnam, which are in the range of 4 square meters per capita, as well as Malaysia and Thailand of around 3-3.5 square meters per capita.
"This means that the expansion space for the national ceramic industry is still very large," said Edy.
In the midst of these opportunities, he said the association also noted a number of challenges that still overshadow the industry, such as limited gas supplies and a surge in ceramic imports.
Asaki noted that by 2025, imports from India increased by 55 percent, Vietnam increased by 32 percent, and Malaysia jumped by 210 percent.
"We will work with KADI to initiate a damping investigation against India in the first semester of 2025, as well as tracing the alleged transhipment of Chinese products through Malaysia," he said.
In addition, Asaki also highlighted the problem of the supply of clay raw materials due to the revocation of mining permits in West Java, as well as encouraging the acceleration of policies to move the import entrance to outside Java Island to protect domestic industries.
"With strong synergy between the government and industry players, we believe that the national ceramic industry will not only rise, but also become a major player in the region," said Edy.
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