ESDM Assures Domestic Gas Supply Remains Secure

The Ministry of Energy and Mineral Resources (ESDM) has assured that natural gas supplies for domestic needs, particularly the industrial sector, are secure. To ensure this, the ESDM Ministry held a coordination meeting with PT PGN Tbk, SKK Migas, the Ministry of Industry, and industrial users of the Certain Natural Gas Price (HGBT) scheme. ESDM Ministry Director General of Oil and Gas Laode Sulaeman stated the meeting was a follow-up to Minister Bahlil Lahadalia’s directive to resolve various issues related to HGBT implementation. According to him, the government is matching upstream gas availability with the real needs of industry. This step is taken so that data discrepancies, which later lead to claims of gas supply shortages, no longer arise. “So, the point is we are matching the upstream supply with the needs on the industrial side so that there are no more differences which later are claimed as supply shortages,” Laode said at the ESDM Ministry on Friday (26/6/2026). He explained the government is now mapping in detail the volume of upstream gas supply and the needs of each industry. This way, potential supply shortages can be anticipated from the outset. “So, we can get an early picture of whether it is enough or not. So, don’t let a shortage occur and then the industry claims that they are lacking HGBT, when the reality may not be so,” he said. Previously, Minister of Energy and Mineral Resources Bahlil Lahadalia explained that the gas price increases complained about by some industry players were not due to a national gas supply shortage. According to him, the increase only occurred in industries using the non-Certain Natural Gas Price (non-HGBT) 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 is not a problem. 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, Thursday (25/6/2026). He noted the issue is particularly acute in the West Java region, where gas needs must be met using liquefied natural gas (LNG) supplies from other parts of Indonesia. “LNG is brought in from Papua, Sulawesi, Kalimantan, and that incurs additional costs,” Bahlil said. Therefore, the government is seeking solutions so that the burden of price increases does not overly impact the business world. Bahlil said he has held meetings with industry associations and labour unions and is currently conducting technical discussions with PT Pertamina.