Industrial players using natural gas are highlighting issues\nregarding the supply of the Specific Natural Gas Price (HGBT) in West\nJava. The supply, which is deemed not to align with government\nallocations, along with restrictions on gas usage, has the potential to\nsuppress industrial utilisation and national competitiveness.<\/p>\n
The General Chairman of the Forum of Natural Gas Using Industries\n(FIPGB) and the Chairman of the Sheet Glass and Safety Association\n(AKLP), Yustinus, stated that the realisation of HGBT gas supply in West\nJava has currently only reached approximately 88-90 per cent of the\nallocation set in ESDM Ministerial Decree Number 281.K\/2026.<\/p>\n
The problem is not limited to volume. Industries must also pay higher\nprices for gas requirements exceeding the realised supply. In August,\nonly 40 per cent was charged at US$13 per MMBTU, while 60 per cent was\ncharged at US$15.6 per MMBTU.<\/p>\n
Entering September 2026, issues have resurfaced after PGN sent a\nletter to customers in West Java regarding the restriction of HGBT\nsupply to 80 per cent of the minimum contract volume in the Gas Sales\nand Purchase Agreement (PJBG).<\/p>\n
Yustinus believes this policy could potentially suppress industrial\nutilisation, as natural gas is a primary energy source that is difficult\nto replace in several manufacturing sectors. Consequently, industrial\nutilisation is being constrained to just 80 per cent.<\/p>\n
The impact of supply restrictions is already being felt by the\nceramic industry. The Indonesian Ceramic Industry Association (Asaki)\nnoted that at least six companies have begun closing production lines in\nSeptember 2026 due to gas supply limitations.<\/p>\n
The General Chairman of Asaki, Edy Suyanto, stated that the situation\nis exacerbated by the rise in industrial gas prices. The HGBT gas price,\nwhich was previously around US$8 per MMBTU, has risen to approximately\nUS$9 per MMBTU, an increase of about 12%.<\/p>\n
\u201cSeveral ceramic industries have been forced to start shutting down\nproduction lines this September because they are unable to produce\nwithin PGN\u2019s daily gas quota,\u201d explained Edy.<\/p>\n
According to Edy, this condition could disrupt the competitiveness of\nthe national ceramic industry and create uncertainty for businesses that\nhave prepared investments. This is despite the fact that the ceramic\nindustry still has significant capacity expansion plans. In 2026, there\nis an additional capacity of about 38 million square metres, increasing\nnational installed capacity from 648 million square metres in 2025 to\n686 million square metres.<\/p>\n
An additional capacity of approximately 72 million square metres per\nyear is projected to enter between 2027 and the first semester of 2028,\nbringing the industry\u2019s installed capacity to an estimated 758 million\nsquare metres. This expansion requires an investment of around Rp12\ntrillion and has the potential to absorb approximately 7,500\nworkers.<\/p>\n
\u201cHow can the ceramic industry grow if the gas supply must be\nrestricted? How can the manufacturing PMI grow and expand?\u201d Edy\nremarked.<\/p>\n
Industrial players hope that the HGBT allocation set by the\ngovernment in ESDM Ministerial Decree Number 281.K\/2026 can be fully\nrealised. Certainty in gas supply and pricing is considered vital for\nindustries to maintain production capacity, competitiveness, and meet\ncommitments to both domestic and export markets.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ceramic-industry-in-distress-as-gas-supply-restricted-by-80-per-cent-1789390414", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }