Jakarta - Indonesia has capped the price of liquefied natural gas (LNG) for industrial users at US$13 per MMBTu, as authorities move to cushion businesses from a surge in global energy costs and to prevent massive layoffs, a minister said on Monday, 29 June 2026.
Energy and Mineral Resources Bahlil Lahadalia said the policy was introduced after global LNG prices climbed. Global LNG prices surge due to global crisis, particularly due Russia-Ukraine war and West Asia tense and heat conflicts.
Current global LNG prices for Asian spot cargoes are stick around US$15.52 per MMBTu
Previously, LNG prices for industrial at the range between US$20 and US$23 per MMBTu, and it has been affecting industrial supply, particularly in western parts of the country.
For combined factors, including high LNG prices have caused layoffs of at least 43,000 workers from January to June 2026, according to the Manpower Ministry's data.
“Industrial LNG prices, which previously ranged from US$20 to US$23 per MMBTu, have now been set at US$13 per MMBTu,” Minister Bahlil told journalists after a hearing session with Commission XII of the Hose of Representatives (DPR) .
Meanwhile, the government, according to Minister Bahlil, keeps the prices for LNG for national strategic industries at US$6.5 to US$7 per MMBTu and for pipe-use industrial sector at US$9.6 per MMBTu.
The energy minister said the decision followed consultations with industry players, including manufacturers and labour groups, as the government sought to balance cost pressures with employment concerns. The government has also discussed with state-owned power company PLN and state-run gas firm PGN before taking decision to curb LNG prices for industrial purposes.
He attributed the earlier price surge to additional cost components, including transportation from outside Java, regasification processes and downstream pipeline distribution.
