PGN Gas Supply Restrictions Disrupt Indonesian Industries

The Indonesian government's gas supply restrictions have caused widespread disruptions in industries across the country. According to the Natural Gas Users Industry Forum (FIPGB), from September 1 to 13, businesses received only around 80% of their natural gas requirements. From September 14 to the end of the month, this was reduced further to about 78% of contracted minimum volumes.

FIPGB chairman Yustinus Gunawan stated that 'the decline in natural gas supply has had a chain effect that is severely hurting industries.'

The restrictions have led to increased energy costs for industries as they are forced to cover shortages with more expensive liquefied natural gas (LNG). The government's Energy and Mineral Resources Ministerial Decree No. 281 K/2026 aimed to ensure that Perusahaan Gas Negara (PGN) supplies 100% of agreed volumes at a low price, but industries continue to receive less than their allocated volumes.

As a result, some business players have been forced to reduce smelting activity, shut down production lines, and furlough workers. This is raising concerns about the impact on manufacturing jobs and the overall economy.