Indonesia industrial gas crisis threatens investment and jobs

The Indonesian Chamber of Commerce and Industry (Kadin) is urging the government to resolve ongoing industrial gas supply and pricing issues. Industry leaders warn that energy uncertainty is hindering production, threatening national industry sustainability, and potentially reducing investment and job creation.

According to Kadin Vice Chairman Saleh Husin, the crisis involves two fundamental problems: the certainty of supply availability and the affordability of gas prices. He suggested that the government evaluate national gas priorities, potentially redirecting some export volumes to meet domestic industrial needs while adhering to existing contracts and regulations.

The impact is already being felt in sectors such as the ceramic industry. Reports indicate that gas supply restrictions under the Certain Natural Gas Price (HGBT) program have forced some companies to reduce production capacity or consider layoffs. The Association of Various Indonesian Ceramic Industries (ASAKI) noted that recent supply limitations have caused a decline in the sector's performance.