Industrial LNG Price Cut: Union Chief Urges Companies to Commit to No Layoffs

The President of the Confederation of All-Indonesian Workers’ Unions (KSPSI), Andi Gani Nena Wea, has welcomed the government’s decision to lower the price of liquefied natural gas (LNG) for industry from USD 23 per MMBTU to USD 13 per MMBTU. He urged companies to demonstrate a commitment to refrain from carrying out layoffs following the price reduction. “The price of gas, which was USD 23 per MMBTU, has fallen to USD 13. That means a saving of USD 9 per MMBTU. We believe this will greatly assist businesses and industries that use industrial gas. Therefore, we expect companies to truly show their commitment,” Andi Gani said at the KSPSI headquarters in Kebayoran Baru, South Jakarta, on Monday (29/6/2026). He noted that he, along with the government—including Minister of State Secretary Prasetyo Hadi, Minister of Manpower Yassierli, Minister of Energy and Mineral Resources Bahlil Lahadalia, Deputy Speaker of the House of Representatives Sufmi Dasco Ahmad, and National Police Chief General Listyo Sigit—had engaged in intensive discussions to lower industrial gas prices as a measure to prevent a wave of layoffs. He stated that despite the renewed conflict between the United States and Iran, the government and labour unions continue to fight for the welfare of workers. He emphasised that the reduction in industrial gas prices represents a victory for the working class. “I stress that this struggle is not only for KSPSI members, but for all Indonesian workers. Because those affected by industrial gas prices are not just KSPSI members, but everyone. So, this victory is a victory for Indonesian workers. This struggle is the struggle of Indonesian workers,” Andi Gani said. On the same occasion, Andi Gani also announced plans to meet with the management of PT Granito, which had laid off hundreds of workers due to the previously high cost of industrial gas. He said he would attempt to sit down together to find a solution regarding the layoffs. “Tomorrow we will discuss the fate of PT Granito, and in the near future I will meet with the company’s leadership because I want to save my members, KSPSI members, and also the workers employed there, even if they are not affiliated with KSPSI. For me, this struggle is a shared struggle,” he added. The government officially lowered the price of LNG for industry to USD 13 per MMBTU from the previous range of USD 20-23 per MMBTU. Minister of Energy and Mineral Resources Bahlil Lahadalia stated that the price cut was carried out under the direction of President Prabowo Subianto to maintain industrial sustainability and prevent layoffs. “Based on the President’s direction, as the President is very concerned about safeguarding industry and jobs, we were ordered to act. Input from industry was around USD 15-16 per MMBTU. But after calculating, we proposed to the President to lower it to USD 13 per MMBTU,” Bahlil said.