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.
Gas supply in Indonesia dropped to 78% of contracted minimum volumes in September, according to the Natural Gas Users Industry Forum (FIPGB). The disruption has caused production issues, with some businesses reducing smelting activity, shutting down production lines, and furloughing workers. Industry players have expressed concerns over the state-owned Perusahaan Gas Negara (PGN) gas supply restrictions, which they say are disrupting production, raising energy costs, and threatening manufacturing jobs.
The government has implemented measures to ensure PGN supplies 100% of the agreed volumes at a low price, but industries are still receiving less than their allocated volumes. This shortfall has led to increased energy costs, as gas consumed beyond HGBT allocations can be charged at prices up to $15.6 per MMBTU. Industries are also covering shortages with more expensive liquefied natural gas (LNG), adding to cost pressures amid a weaker rupiah.
Brief written by urgent.news from The Jakarta Post's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
