Indonesia Cuts LNG Prices to Boost Industrial Competitiveness

RRI.CO.ID, Jakarta - The government has officially lowered the price of liquefied natural gas (LNG) for the industrial sector to USD 13 per Million British Thermal Units (MMBTU).

Directed by President Prabowo Subianto, the policy is expected to boost national industrial competitiveness, maintain business continuity, and safeguard jobs.

Energy and Mineral Resources Minister Bahlil Lahadalia announced that the LNG price outside the Specific Natural Gas Price (HGBT) scheme for end consumers in West Java, Banten, and Jakarta has been reduced from around USD 20.57 to USD 13 per MMBTU.

The new price is even lower than the initial proposal from the national industry association, which had expected a range of USD 15–16 per MMBTU.

Meanwhile, under the HGBT scheme, the government confirmed that tariffs remain in line with existing regulations, at USD 6.50 per MMBTU for raw gas and USD 7 per MMBTU for fuel gas.

In response, state-owned gas company PT Perusahaan Gas Negara Tbk (PGN), expressed readiness to implement the government’s pricing policy.

PGN President Director Arief K. Risdianto thanked the government, particularly the Energy and Mineral Resources Ministry, for a policy he said fairly considers the interests of all stakeholders.

“PGN appreciates the government, especially the Ministry of Energy and Mineral Resources, for establishing a national natural gas pricing policy that fairly considers all stakeholders,” Arief said in an official statement on Monday, June 29, 2026, as quoted by infopublik.id.

He emphasized PGN’s commitment to overseeing the implementation of all technical provisions set by the ministry while maintaining service quality for customers.

“We will continue to ensure a reliable, secure, and sustainable natural gas supply to support industrial competitiveness, strengthen national energy security, and benefit the economy and society,” Arief said.

PGN added that the LNG price adjustment will be accompanied by efforts to maintain a dependable supply to meet the industrial sector’s energy needs sustainably. ***