PGN Gas Supply Restrictions Disrupt Indonesian Industry
Industry players in Indonesia are sounding the alarm over gas supply restrictions imposed by state-owned Perusahaan Gas Negara (PGN), which they claim is disrupting production, driving up energy costs, and putting manufacturing jobs at risk.
The Natural Gas Users Industry Forum (FIPGB) has reported that businesses received only around 80% of their contracted natural gas requirements from September 1 to September 13, while supplies from September 14 through the end of the month were reduced to about 78% of contracted volumes.
According to FIPGB chairman Yustinus Gunawan, 'The decline in natural gas supply has had a chain effect that is severely hurting industries.' The government's Energy and Mineral Resources Ministerial Decree No. 281 K/2026 aims to adjust the recipients and allocated volumes under the Specific Natural Gas Price (HGBT) scheme for certain industries to ensure PGN supplies 100% of agreed volumes with the low price between US$7 per million British thermal units (MMBtu).
The decree's goal is to prioritize supply allocations, but industry players worry it will further exacerbate existing issues.