Industry Urges Stronger Implementation of Gas Subsidy to Boost Performance
Bekasi, West Java (ANTARA) – The Indonesian Ceramic Industry Association (Asaki) and the Forum of Natural Gas-Using Industries (FIPGB) have urged the government to strengthen implementation of the subsidised natural gas price policy, particularly by ensuring supply availability, to boost industrial performance.
FIPGB chairman Yustinus Gunawan said the manufacturing Purchasing Managers’ Index (PMI) had remained in expansion for 29 consecutive months up to early 2024, demonstrating that the policy, known as HGBT, had helped restore industrial performance after a downturn.
In a statement in Jakarta on Monday, he said implementation of the policy, launched during the COVID-19 pandemic, had demonstrated the soundness of the government’s decision-making.
The forum’s figures show that in June 2026, 27.5 per cent of allocated gas volume was purchased at the HGBT price of US$7 per million British thermal units (MMBTU), while the remainder was supplied by regasified LNG at about US$20 per MMBTU.
The Ministry of Industry estimates industrial gas demand at about 2,700 million standard cubic feet per day (MMSCFD), while approximately 1,600 MMSCFD is supplied through the HGBT scheme.
The ministry also recorded a positive impact from HGBT on the industrial sector of Rp147.11 trillion over 2020-2023.
Asaki, meanwhile, says HGBT should be viewed as a strategic state investment to generate industrial value added, improve the competitiveness of domestic products, expand investment and create jobs.
The government therefore needs to guarantee the availability, affordability and reliability of gas supplies for industry.
Earlier, Asaki chairman Edy Suyanto highlighted restrictions on the use of HGBT gas since September 2026, describing them as a challenge for the national ceramics industry.
Asaki estimates that the average gas price could reach US$8-8.5 per MMBTU under a combination of the HGBT scheme and regasification costs for liquefied natural gas (LNG).
However, limited access to HGBT gas, which covers only about 40 per cent of requirements, means the average industrial gas price is about US$12 per MMBTU in western Java and about US$9 per MMBTU in eastern regions.
The Indonesian Chamber of Commerce and Industry (Kadin) has also called on the government to address natural gas supply and pricing problems for industry in order to safeguard production, investment and domestic job creation.
Kadin deputy chairman for industry Saleh Husin said industrial gas problems were a longstanding issue that had persisted for years without a comprehensive solution.
In a statement in Jakarta on Tuesday (13 October), Saleh said the government needed to urgently address two fundamental issues: certainty of supply and affordable gas prices for domestic industry.