Industrial Gas Prices to Fall by US$7-14 per MMBTU, Announcement on Monday
The Indonesian government plans to announce a policy to reduce industrial gas prices on Monday (29/06/2026). This was revealed by the Special Adviser to the President for Labour and Worker Welfare, who also serves as the President of the Confederation of Indonesian Trade Unions (KSPI), Said Iqbal, during an online press conference on Sunday (28/06/2026).
According to Iqbal, the policy is expected to help suppress production costs and reduce the potential for layoffs (PHK) across several industrial sectors. He noted that the reduction in industrial gas prices is one of the government’s mitigation steps for companies affected by rising energy costs due to conflicts in the Middle East. The granite, ceramics, and textile industries are among the sectors most impacted by the surge in gas and fuel prices.
“For companies where layoffs are occurring due to the sharp increase in fuel and gas prices caused by the prolonged war, the mitigation strategy for companies in the granite and ceramics sectors is to request the central government to lower the prices of gas and non-subsidised fuel,” Said stated during the virtual press conference on Sunday.
Said mentioned that the government has discussed this plan in meetings and will announce the industrial gas price reduction policy on Monday. He estimated that the industrial gas price is expected to fall within the range of US$7 to US$14 per MMBTU.
“We have held meetings, and on Monday, the reduction in industrial gas prices will be announced. I cannot recall the exact terminology, but it is between 7 dollars and 14 dollars,” said Said.
He believes this policy will reduce the production cost burden on companies, thereby suppressing the potential for layoffs that have been triggered by high energy prices.
On the other hand, Said also refuted reports claiming that 55,000 workers would be laid off. He stated that while the number of affected workers does reach into the thousands, it is not as large as the circulating figures.
“It is not true that 55,000 employees will be laid off. While thousands are being laid off, the announcement of the gas price reduction on Monday afternoon will reduce that potential threat of layoffs,” he concluded.