Bahlil Addresses Concerns Over Rising Industrial Gas Prices

Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia has explained that the increase in gas prices complained about by a number of industry players is not occurring because of a shortage in national gas supply. According to him, the increase only affects industries using the non-Harga Gas Bumi Tertentu (HGBT) pricing scheme. As is known, there are two types of gas prices applied to industry, namely the cheap gas policy tariff (HGBT) and non-HGBT.

"Overall, our gas stock has no problems. What exists is a gas price increase in some non-HGBT industries. There are two types, HGBT which is actually subsidised by the state, and non-HGBT which is the general price," Bahlil said after the CNBC Indonesia Energy Forum event in Jakarta on Thursday (25/6/2026).

Bahlil explained that the price increase was triggered by declining production from a number of gas wells, especially in the West Java region. Consequently, gas needs must be met using liquefied natural gas (LNG) supplies from other regions in Indonesia. "LNG is brought from Papua, Sulawesi, Kalimantan, and that incurs additional costs," Bahlil said.

Therefore, the government is seeking a solution so that the burden of the price increase does not overly burden the business world. Bahlil said he has held meetings with industry associations and labour unions, and is now conducting technical discussions with PT Pertamina. "We are trying to mediate so that the industry is not burdened with high prices. Within this week, I have already met with them, with the associations and the workers, and now I am in a technical meeting with Pertamina to find an ideal figure so that our industry can still survive," Bahlil stated.