Indonesia slashes industrial LNG prices to shield manufacturers

Jakarta (ANTARA) - Indonesia has lowered industrial liquefied natural gas (LNG) prices to US$13 per MMBtu to protect domestic manufacturers and prevent mass layoffs amid rising global energy costs, Energy Minister Bahlil Lahadalia announced Monday.

The emergency price cut, enacted following directives from President Prabowo Subianto, slashes the industrial LNG tariff from its previous market high of $20–$23 per MMBtu.

The policy directly addresses a supply crunch in western Java, where declining local gas production forced factories to import more expensive LNG from Papua, Sulawesi, and Kalimantan, incurring steep transportation and regasification costs.

"We believe ensuring job sustainability is part of the government's responsibility," Lahadalia told a press conference following consultations with the House of Representatives (DPR) and hard-hit manufacturing sectors like ceramics.

Under the revised framework, the government will maintain its separate, highly subsidized Specific Natural Gas Price (HGBT) scheme at US$6.50–US$7.00 per MMBtu for priority sectors.

Industries utilizing standard pipeline gas outside the HGBT scheme in Java will see prices hold steady at US$9.60 per MMBtu.

Translator: Ahmad, Kenzu

Editor: Aditya Eko Sigit Wicaksono

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