Kadin’s Gas Import Proposal Sparks Policy Debate, Ministry Prioritizes Energy Security
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JAKARTA, Investortrust.id — Indonesia’s Chamber of Commerce and Industry has called on the government to allow manufacturers to import natural gas, citing persistent shortages in domestic supply and rising costs that threaten industrial competitiveness. The Energy Ministry, however, has emphasized that energy security remains the nation’s policy focus and said gas imports are not yet a priority.
Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) Laode Sulaeman said the government’s stance is to prioritize national energy resilience. “At this stage, our policy is to maintain energy security, so we prefer to limit imports,” Laode said after a discussion at Menara Kadin in South Jakarta on Tuesday, Oct 7, 2025.
Laode, who serves under Energy Minister Bahlil Lahadalia, stressed that the government still welcomes feedback from industry players. “We appreciate input from our colleagues in the manufacturing sector. Mr. Saleh also mentioned import options, but we will first gather and evaluate such proposals,” he added.
During the same forum, Kadin Vice Chairman for Industry Saleh Husin warned that limited gas supply at subsidized prices has already strained manufacturers. Under the current scheme, the government sets a special gas price (HGBT) at US$ 6 per MMBTU for seven priority industrial sectors.
Yet, Saleh said only around 60% of the required volume has been delivered at that price, leaving many manufacturers to buy gas at market rates of US$ 16–17 per MMBTU.
“Many industries are only getting 60% of their gas at the government-set price, while the rest must pay market rates,” Saleh said during the discussion themed “Natural Gas Sustainability for National Industry: Policy Synergy, Supply, and Competitiveness.”
He argued that such a gap weakens the country’s manufacturing base and risks driving companies to relocate production abroad. “If energy costs stay too high, some industries might move to neighboring countries where gas prices are more competitive,” he warned.
Saleh said the manufacturing sector, which contributes significantly to employment and value-added output, is crucial for achieving President Prabowo Subianto’s economic growth target of 8%. “To grow the economy by 8%, we must ensure industries grow. That means securing reliable and affordable energy,” he added.
Kadin has proposed that the government issue import permits for industrial users when domestic supply is insufficient, framing it as a short-term safeguard rather than a policy shift. “If next year domestic supply still falls short, we hope the Energy Ministry will consider allowing industries to import gas for their needs,” Saleh said.
While ESDM has yet to endorse the proposal, the discussion underscores a broader tension between maintaining national energy security and ensuring industrial competitiveness amid uneven gas distribution. The debate also highlights challenges in executing Indonesia’s gas pricing reforms, which aim to balance fiscal prudence with economic growth ambitions under President Prabowo’s administration.