Indonesia's Manufacturing Sector Struggles with Gas Supply Crisis

The Indonesian manufacturing industry is facing significant challenges due to restrictions on natural gas supply. According to Yustinus Gunawan, Chairman of the Natural Gas Users Industry Forum (FIPGB), the supply restriction by Perusahaan Gas Negara (PGN) has resulted in a decrease in natural gas supply, affecting production and increasing costs for industries that rely heavily on gas.

The restrictions have led to a shortage of gas, causing industry players to face higher prices, which can reach up to US$15.6 per million British thermal units (MMBTU). The weakening rupiah against the US dollar has added to the pressure, making it difficult for industries to sustain their operations.

The Chairman of the Indonesian Ceramic Industry Association (ASAKI), Edy Suyanto, stated that the national ceramic industry is being severely impacted by the limited supply of natural gas. Several companies have been forced to cut production capacity by 40-50 percent due to the lack of gas, which is a vital component in the production process.

The Secretary General of the Sheet Glass and Safety Association (AKLP), Sander L. Sembiring, also expressed concerns about the supply shortage, stating that the glass industry is receiving supplies far below normal requirements.