Officially in Effect! LNG Gas Price Drops to US$13 per MMBTU
The Ministry of Energy and Mineral Resources (ESDM) has officially lowered the price of liquefied natural gas (LNG) for industry from US$23 to US$13 per MMBTU. The policy took effect on Monday (29/6/2026).
Minister of Energy and Mineral Resources Bahlil Lahadalia explained that the price reduction was achieved by cutting margins throughout the natural gas supply chain, from upstream to downstream. The policy became effective immediately upon announcement to provide certainty for domestic industrial players.
"It takes effect as I speak (Monday, 29 June 2026)," he said when met after a press conference at the DPR RI Building in Jakarta.
The LNG price adjustment for industry is the government’s response to the surge in LNG prices, which had previously soared to US$23 per MMBTU. The ministry considers price intervention essential for industries that produce goods so that production costs remain controlled and competitive.
"The significant increase occurred with LNG, from a price of US$13-14 to US$23. That is where the government took responsibility together with upstream oil and gas, the Cooperation Contract Contractors (KKKS), and Pertamina to reduce costs. It is like saying, don’t ask for too much profit, something like that," he added.
The price reduction policy is specifically aimed at productive downstream industries to minimise the risk of layoffs. However, for other sectors such as power generation, the LNG pricing mechanism will continue to operate normally without similar adjustments.
"LNG, LNG. This is for industry. This is for industries that produce goods. Yes, this is for industries that produce goods because we want to guarantee and maintain existing jobs. For LNG for power plants, it’s business as usual," he stated.
With this move, the government hopes to reduce the energy cost burden on the manufacturing industry. It is also expected to alleviate business players’ concerns regarding gas supply at more affordable prices for industrial operations.
The Ministry of Energy and Mineral Resources is not altering the price of natural gas for specific prices (HGBT), which remains at US$6.5 - US$7 per MMBTU, nor the piped gas price of US$9.6 per MMBTU.