The Indonesian government has moved to further restrict domestic liquefied natural gas (LNG) prices, aiming to protect local industry and preserve employment amid rising energy costs.
Energy and Mineral Resources Minister Bahlil Lahadalia confirmed the decision, framing the price reduction as a necessary measure to support domestic manufacturers who have been struggling with soaring input costs.
The policy reinforces a strict price cap on industrial LNG, setting the rate at US$13 per MMBtu.
The policy reinforces a strict price cap on industrial LNG, setting the rate at US$13 per MMBtu.
This ceiling is significantly below prevailing international market levels, effectively subsidizing domestic consumption at the expense of potential export revenue.
The move signals Jakarta’s prioritization of industrial competitiveness and social stability over maximizing returns from its natural gas reserves.
For global LNG traders, the development underscores the persistent supply constraints in Southeast Asia.