Indonesia has imposed a strict price cap on industrial liquefied natural gas (LNG), setting the rate at US$13 per MMBtu.
The measure is designed to protect domestic manufacturers from soaring energy costs and avert widespread layoffs in key industrial zones.
The intervention comes as the archipelago grapples with declining domestic gas production.
To maintain supply for its manufacturing base, particularly in Java, authorities have been redirecting LNG shipments from central and eastern islands.
This logistical shift underscores the growing strain on the country's energy infrastructure as it attempts to balance domestic industrial needs with export obligations.
According to Antara News, the state-affiliated wire service, the price cut is a direct response to rising operational costs that threaten the viability of local factories.