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View all search resultsGas supply drops to 78% in September, industry says
The restrictions have disrupted production with some business players reducing smelting activity, shutting production lines and furloughing workers.
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A worker checks machinery at factory of the ceramics firm, PT Arwana Citramulia, in Serang, Banten, in this undated photograph. (Antara/Rosa Panggabean)
I
ndustry players have raised concerns over gas supply restrictions imposed by state-owned Perusahaan Gas Negara (PGN), saying they are disrupting production, raising energy costs and putting manufacturing jobs at risk.
From Sept. 1 to 13, businesses only received around 80 percent of their requirements, while supplies from Sept. 14 through the end of the month were reduced to about 78 percent of contracted minimum volumes, according to the Natural Gas Users Industry Forum (FIPGB).
“The decline in natural gas supply has had a chain effect that is severely hurting industries,” FIPGB chairman Yustinus Gunawan said on Tuesday, as quoted by Kompas.
The government has issued Energy and Mineral Resources Ministerial Decree No. 281 K/2026, adjusting the recipients and allocated volumes under the Specific Natural Gas Price (HGBT) scheme for certain industries to ensure that PGN supplies 100 percent of the agreed volumes with the low price between US$7 per million British thermal units (MMBTU).
However, Yustinus said industries were still receiving less than their allocated volumes.
The shortfall is raising energy costs, as gas consumed beyond HGBT allocations can be charged at prices of up to $15.6 per MMBTU. Industries have also had to cover shortages with more expensive liquefied natural gas (LNG), adding to cost pressures amid a weaker rupiah, he noted.
The restrictions have also disrupted production, with some FIPGB members reducing smelting activity, shutting production lines and furloughing workers.
