Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia, on Friday stated that the industrial gas supply, which had previously been reported as reduced, has now stabilized. He noted that the improvement was due to measures such as cutting back gas exports and redirecting the supply to meet domestic demand.
“So, we are not doing some of the export. Also, there is a new supply of gas,” Bahlil added.
Bahlil said that the recent drop in gas supply was caused by a pipeline fire at a Pertamina EP facility in Subang, West Java. Earlier, state-owned gas distributor PT Perusahaan Gas Negara (PGN) had also declared restrictions on gas supply to industrial users due to an imbalance between supply and demand in August.
PGN Corporate Secretary Fajriyah Usman reported that the issue was also caused by a reduction in gas distribution from contractors under the working contract cooperation scheme (KKKS). As a result, PGN temporarily limited gas supply to certain customers in West Java and Sumatra. She also mentioned that additional gas supplies are currently being finalized.
PGN stated that the gas pressure in the pipeline infrastructure has stabilized, following joint efforts with the Ministry of Energy, SKK Migas, Pertamina, and other key stakeholders.
The additional supply is expected to improve reliability and ensure continuous service.
Earlier, the Ministry of Industry reported that gas supply limitations had caused reduced utilization in several industrial sectors, including the national ceramic industry. Despite these constraints, Ministry of Industry Spokesperson Febri Hendri revealed that in the first half of 2025, the ceramic industry’s utilization rate was around 70% to 71%, representing an improvement compared to the previous year.
Febri highlighted that national industrial gas demand has reached 2,700 MMSCFD, while only 1,600 MMSCFD is available under the Certain Natural Gas Price (HGBT), with 900 MMSCFD allocated to state-owned firms. This shortfall may impact private companies and reduce business efficiency. He also warned that rising HGBT rates could shrink profit margins, lower factory utilization, and eventually reduce investor interest in energy-intensive manufacturing.
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