Industrial gas prices rise, Bahlil seeks new pricing with Pertamina
The price increase has raised layoff fears at a Bekasi ceramic plant, with possible spillover to about 55,000 workers if energy costs stay high.
Energy and Mineral Resources Minister Bahlil Lahadalia is seeking a more ideal pricing scheme after higher gas prices have squeezed some non-HGBT industries. He said the government has met with industry associations and labor unions, then continued technical discussions with PT Pertamina so the cost burden does not become too heavy.
According to Bahlil, the increase was not caused by a tight national gas supply, but by declining production at a number of wells, especially in West Java. The shortfall was then covered with LNG from Papua, Sulawesi, and Kalimantan, which added logistics costs and pushed up industrial gas prices.
The issue intensified after the DPR received a report of potential layoffs at one major ceramic plant in Bekasi within 7-10 days, with the impact said to potentially reach 55,000 workers.