State-owned gas distributor PT Perusahaan Gas Negara (PGN) has pledged to secure gas supply for industries following growing concerns over disruptions that could threaten more than 130,000 jobs in the manufacturing sector.

PGN corporate secretary Fajriyah Usman said that the company was working with the Energy and Mineral Resources Ministry (ESDM), The Upstream Oil and Gas Regulatory Task Force (SKK Migas), state owned Energy Company Pertamina, and other stakeholders to stabilize supply, particularly in West Java and parts of Sumatra.

“We appreciate the government’s support and continue to coordinate intensively to ensure sustainable supply,” she said as quoted in a statement on Sunday, August 17, 2025.

PGN recently imposed a quota on the use of subsidized gas under the government’s special gas price (HGBT) scheme, limiting it to 48 percent of industries’ needs. Consumption beyond that quota is charged at up to US$17.8 per Million British Thermal Units (MMBTU), compared with the regulated $6.5 per MMBTU ceiling.

Industry groups, including the Indonesian Ceramic Industry Association (Asaki) and the Indonesian Sheet and Safety Glass Association (AKLP), have protested the move, calling it a heavy blow to competitiveness.

The Ministry of Industry has voiced concern, warning that reduced allocation would hit energy-intensive sectors such as ceramics, glass, steel, fertilizers, petrochemicals, and oleochemicals. Ministry spokesman Febri Hendri Antoni Arief described the quota as “the worst Independence Day gift from PGN,” adding that it could weaken food security and energy resilience.

Data from the industry ministry shows that 134,794 workers in manufacturing sector depend on HGBT, with ceramics and steel industries accounting for the largest share.

Febri warned that prolonged restrictions could force factories to cut output or shut down, triggering mass layoffs and discouraging investment.

“The HGBT policy is a presidential decree. No institution should undermine it by raising the price or restricting supply. Otherwise, we risk eroding industrial capacity and driving investors away,” he said as quoted by Kompas, on Monday, Aug. 18, 2025.