Pertamina has publicly endorsed the Indonesian government’s newly ratified policy on national natural gas governance, reinforcing the state’s strategy to secure affordable energy for domestic industry.
The state-owned oil and gas major’s backing comes as Jakarta moves to formalize pricing mechanisms that had previously been subject to negotiation and market volatility.
The policy framework is expected to solidify the directive for state gas companies to sell liquefied natural gas (LNG) to domestic manufacturers at a capped price of US$13 per million British thermal units (MMBtu).
The policy framework is expected to solidify the directive for state gas companies to sell liquefied natural gas (LNG) to domestic manufacturers at a capped price of US$13 per million British thermal units (MMBtu).
PT Perusahaan Gas Negara (PGN), the state gas distributor, has already confirmed its readiness to implement the pricing cap, signaling a coordinated effort across state energy entities to stabilize input costs for the manufacturing sector.
This alignment between Pertamina and the Ministry of Energy and Mineral Resources (ESDM) reduces the risk of supply disruptions or price shocks for Indonesian industry.
By locking in a predictable pricing structure, the government aims to bolster competitiveness in energy-intensive sectors while ensuring national energy security.