Gas 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.
In September, the natural gas supply to industries dropped to 78% from the contracted minimum, according to the Natural Gas Users Industry Forum (FIPGB). Businesses received around 80% of their requirements from September 1 to 13, but this dwindled to about 78% of their contracted volumes for the rest of the month, Kompas reported.
The Natural Gas Users Industry Forum's chairman, Yustinus Gunawan, stated that the decline in natural gas supply had a ripple effect, severely impacting industries. On September 1, the government issued Energy and Mineral Resources Ministerial Decree No. 281 K/2026, adjusting allocations under the Specific Natural Gas Price (HGBT) scheme to ensure PGN supplies 100% of agreed volumes at a low price of US$7 per million British thermal units (MMBTU).
However, industries are still receiving less than their allocated volumes, raising energy costs when gas consumed beyond HGBT allocations is charged at prices up to $15.6 per MMBTU. Some FIPGB members have reduced smelting activity, shut production lines, and furloughed workers due to the restrictions.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
