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Lack of transparency clouds gas supply amid industry shortages

Industry players said that if the gas supply chain data were made public, it would be easier to identify where the breakdown occured and who should be held accountable for shortages under the HGBT scheme.

Divya Karyza (The Jakarta Post)
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Fri, August 29, 2025 Published on Aug. 29, 2025 Published on 2025-08-29T11:44:53+07:00

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PGN's floating storage and regasificaiton unit (FSRU) in Lampung. PGN's floating storage and regasificaiton unit (FSRU) in Lampung. (PGN/PGN)

I

n mid-August, Indonesia’s factories were brought to the brink as a gas supply crunch forced sweeping rationing across industries. The worst of the crisis has since passed, but industry leaders warn that lingering problems in supply could cause new instability and undermine business confidence.

Between Aug. 13 and 19, gas distributors slashed deliveries to just 48 percent of contracted volumes, pushing many factories to the brink of shutdown. Though restrictions eased slightly from Aug. 20 to 22, usage was still capped at 65 percent, with production lines struggling to keep up.

It was not until Aug. 23 that supply finally returned to normal, restoring full allocations and allowing businesses to breathe again.

Yustinus Gunawan, chairman of the Forum for Natural Gas-Using Industries (FIPGB), confirmed that the acute supply crisis under the fixed natural gas price (HGBT) scheme has been temporarily resolved.

However, he cautioned that the root problems remain unresolved.

“There has been no explicit statement regarding the full fulfillment of supply in accordance with the allocated volume and price,” Yustinus told The Jakarta Post on Wednesday.

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He was referring to the allocations mandated in Energy and Mineral Resources Ministerial Decree No. 76/2025 on subsidized natural gas for industry. Yustinus noted that since its introduction in 2020, supply from state-owned gas distributor PGN has never fully complied with the ministerial decree, highlighting a persistent gap between policy and implementation.

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