TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsIndustries reel from prolonged gas shortage
Downstream manufacturers nationwide are starting to feel the pinch a week after unscheduled maintenance triggered a sudden drop in the natural gas supply, though government data trace the decline back several weeks, with some resorting to costly fuel switching to maintain production output.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
A fine mist obscures the horizon off the facilities of Chandra Asri Petrochemical, Indonesia’s largest publicly listed energy company, in Cilegon, Banten, in this undated photo.
G
as-reliant businesses across Java and Sumatra say natural gas supplies are yet to return to normal, though state-owned gas distributor PT Perusahaan Gas Negara (PGN) insists that conditions are stabilizing.
The Natural Gas Users Industry Forum (FIPGB) reported that several factories had observed an improvement in gas pressure after weeks of drastic drops that forced them to halt production, but said the supply remained far from reliable.
“Some industries have been forced to switch to light oil, compressed natural gas [CNG] or even coal. But these substitutes are not sustainable, either economically or in terms of Indonesia’s energy transition goals,” FIPGB chairman Yustinus Gunawan said on Tuesday, as quoted by Bisnis.com.
Alternative fuels come with higher price volatility and require costly operational adjustments, from modifying equipment to retraining staff.
Yustinus added that many companies had resorted to fuel switching temporarily just so they could keep fulfilling export orders and maintain customer trust.
Read also: Gas subsidy cut could slash industrial output, trigger layoffs: Ministry
The natural gas shortage dates back to Aug. 13, when cooperation contractors (KKKS) announced an unexpected reduction in supply due to unplanned maintenance.
