Indonesia Cuts LNG Gas Price for Industry to $13/MMBTU

Indonesia's government has lowered the price of natural gas for industrial consumers supplied via Liquefied Natural Gas (LNG) to $13 per MMBTU. Minister of Energy and Mineral Resources Bahlil Lahadalia explained that this decision aims to safeguard industrial competitiveness and protect employment opportunities amidst increasing energy supply costs.

The policy emerged after nearly ten days of consultations with industry stakeholders, including the ceramics sector and the Confederation of All Indonesian Workers' Unions (KSPSI). Discussions were also held with parliamentary leaders and other relevant parties to find a solution to the high gas prices affecting industries.

"We believe ensuring the sustainability of employment is part of the government's responsibility," Lahadalia stated in Jakarta on Monday. He detailed that current industrial gas needs are met through three schemes: a specific gas price (HGBT), non-HGBT pipeline gas, and non-HGBT gas sourced from LNG.

The HGBT price remains at $6.5 per MMBTU for feedstock and $7 per MMBTU for fuel. Gas supplied via non-HGBT pipelines in West Java continues to be priced around $9.6 per MMBTU. The new $13 per MMBTU price specifically targets LNG-sourced gas for industries, balancing the need for affordability with the realities of global energy markets.

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We believe ensuring the sustainability of employment is part of the government's responsibility.