Industrial LNG Price Set at US$13 per MMBTU, Minister Bahlil Explains Rationale

Minister of Energy and Mineral Resources Bahlil Lahadalia explained that the government has lowered the price of natural gas for industries supplied from liquefied natural gas (LNG) to US$13 per MMBTU. The policy was taken to maintain industrial competitiveness while preserving jobs amid rising energy supply costs.

The government formulated the policy after receiving various inputs from industry players, including the ceramics sector and the All-Indonesia Workers Union Confederation (KSPSI), over the past 10 days. Discussions were also held with House of Representatives leaders and stakeholders to find a solution to the high price of gas for industry.

“We believe that ensuring the sustainability of jobs is part of the government’s responsibility,” Bahlil said in Jakarta on Monday (29/6/2026).

He explained that the current industrial gas needs are met through three schemes, namely the Certain Natural Gas Price (HGBT), non-HGBT piped gas, and non-HGBT gas sourced from LNG. The HGBT price is maintained at US$6.5 per MMBTU for raw materials and US$7 per MMBTU for fuel, while the non-HGBT piped gas price in West Java remains at around US$9.6 per MMBTU.