Even more frustrating, 80 percent of Indonesia’s gas supply is being consumed by domestic industries, which he relied on to stoke growth amid a domestic economic slowdown. The industries include electricity production, chemical, food, ceramic, steel, fertilizer and glass –all basic materials for day-to-day consumer products.

Jokowi demonstrated that he is serious about the issue by leading discussions on gas prices in the first Cabinet meeting of the year. He then announced three potential concrete measures to lower industrial gas prices, namely through tax incentives, domestic market obligations (DMO) and simplifying imports.

“I’ve asked for my ministers to carefully calculate how to make gas prices more competitive. Look at the issues ranging from the upstream, midstream to downstream sectors,” Jokowi said, giving ministers a three-month deadline to reach the target.

Industries immediately welcomed the plan. Indonesia Chamber of Commerce and Industry (Kadin) vice chairman for industry Johnny Darmawan called the President’s plan a sign that he was serious about making production costs efficient and competitive for industries, as gas prices have been an issue since 2016.

“We were hopeless […] The manufacturing sector is facing many challenges, such as wages and logistics. But at least this decision will help us,” Johnny said, adding that Presidential Regulation No. 40/2016 has yet to be implemented.

Johnny went on to say that if Indonesia’s gas prices were not competitive, the country should import gas from countries such as from Malaysia, whose gas prices range from $6 or $7 per mmbtu — compared to $8 to $9 per mmbtu for domestic gas.