Industrial Gas Prices to Fall by US$7-14 per MMBTU, Announcement on Monday

The government plans to announce a policy to lower industrial gas prices on Monday (29/6/2026). This was revealed by the Special Advisor to the President on Employment and Labour Welfare, who is also the President of the Confederation of Indonesian Trade Unions (KSPI), Said Iqbal, during an online press conference on Sunday (28/6/2026). He stated that the policy is expected to help reduce production costs and mitigate the potential for layoffs in several industrial sectors. Said assessed that lowering industrial gas prices is one of the government’s mitigation measures for companies affected by rising energy costs due to the conflict 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 occur because fuel and gas prices have risen sharply due to the prolonged war, the mitigation for layoffs in granite and ceramics companies is to ask the central government to lower non-subsidised gas and fuel prices,’ Said explained during the virtual press conference on Sunday. Said noted that the government has discussed the plan in meetings and will announce the industrial gas price reduction on Monday. He estimated that industrial gas prices would be in the range of US$7 to US$14 per MMBTU. ‘We have held meetings and on Monday a reduction in industrial gas prices will be announced. I forget the term, but it’s between 7 dollars and 14 dollars,’ he said. He believes the policy will ease the burden of production costs on companies, thereby reducing the potential for layoffs triggered by high energy prices. Separately, Said also denied reports that 55,000 workers would be laid off. He stated that while thousands of workers are affected, the figure is not as high as rumoured. ‘So it is not true that 55,000 employees will be laid off. Thousands are affected, but with the reduction in gas prices to be announced on Monday afternoon, the threat of those layoffs will decrease,’ he said.