Indonesia Mobilizes Emergency Task Force to Rescue Manufacturing Sector from Gas Crisis

JAKARTA, Investortrust.id — The Indonesian government has moved to a war footing to protect the nation’s manufacturing sector, launching a high-level task force to avert a potential wave of 55,000 layoffs. With industrial giants facing intense pressure from volatile energy costs—specifically the ballooning price of regasified LNG—the Ministry of Energy and Mineral Resources (ESDM) is fast-tracking a comprehensive overhaul of its gas pricing policy to restore stability.

The crisis is most acute in West Java and Lampung, where the depletion of pipeline gas has forced manufacturers to rely on regasified LNG. This pivot has proven devastating for margins; while the government’s fixed HGBT rate is pegged at $7.00 per MMBTU, manufacturers forced to use regasified alternatives saw prices spike from $15.34 per MMBTU in late 2025 to a staggering $20.57 per MMBTU this June.

In a significant signal of market support, the government has appointed Minister of State Secretary Prasetyo Hadi to lead a dedicated Task Force (Satgas) to mitigate layoffs. This effort is being bolstered by emergency coordination meetings between the Ministry of Energy and Resources Mineral, the state-owned energy company PT Perusahaan Gas Negara (Persero) Tbk, the upstream oil and gas regilator SKK Migas, and the Ministry of Industry, all working to "match" upstream supply with the urgent, real-world needs of factory floors.

Fixing the "Workable" Framework

Recognizing that the current system requires immediate refinement, the Ministry of ESDM is now in the process of revising the Ministerial Decree governing the Specific Natural Gas Price (HGBT) program.

Laode Sulaeman, Director General of Oil and Gas, confirmed on Friday that the government is actively seeking to lower costs for the industrial sector.

"We have received instructions from the Minister to discuss with PGN which components can be adjusted, and to examine the upstream sector to see how we can potentially set rates lower than current levels," Laode stated.

The goal is to transform the HGBT scheme into a more resilient framework that can withstand global commodity fluctuations and close the competitive gap with regional neighbors like Malaysia ($9.70/MMBTU) and Thailand ($12.00/MMBTU).

Protecting the Backbone of Industry

The urgency of this intervention follows alarming reports from labor leaders. Andi Gani Nena Wea, President of the Confederation of All Indonesian Workers Unions (KSPSI), noted that major players—including firms like Granito, Milan Keramik, and Mulia Keramik—have been grappling with these unsustainable energy costs. The government’s move to intervene directly provides a vital lifeline to these firms and their workforce.

Beyond the short-term crisis management, the government is looking at structural solutions. Discussions are heating up regarding the creation of a national gas aggregator and the acceleration of critical infrastructure, such as the Cisem Phase II pipeline, to ensure a more stable and cost-effective energy supply for the long term.

As the new Task Force begins its work and the Ministry of ESDM finalizes its regulatory revisions, the focus remains on one goal: keeping the factories running and the workforce employed. For investors watching the Indonesian market, this swift and decisive government action marks a turning point in the country’s industrial energy strategy.