The Indonesian Chamber of Commerce and Industry (KADIN) has welcomed the government’s consideration of halting gas exports to neighboring countries. Saleh Husin, Deputy Chairman of KADIN for Industry, said the policy sends a positive signal for the revival of domestic gas-consuming industries.
Saleh explained that gas is one of the main energy sources for several domestic industrial sectors. Therefore, the government should prioritize the needs of domestic industries to boost manufacturing output, generate added value, and create more employment opportunities.
“As we know, domestic industries that use gas are currently struggling to secure gas supplies. Therefore, considering a halt to gas exports to neighboring countries is a very appropriate step. It means the government is shifting its focus toward prioritizing domestic needs,” Saleh said in a statement on Thursday, October 22, 2026.
Previously, Yustinus Gunawan, Chairman of the Natural Gas User Industry Forum (FIPGB), said that restrictions on gas supplies had become a serious problem because industries need certainty regarding supply volumes and continuity, not merely competitive gas prices.
He said that PT Perusahaan Gas Negara (Persero) Tbk, or PGN, had announced in its latest letter that gas supplies would be restricted starting September 14, 2026, to approximately 78% of the minimum contractual volume stipulated in gas sales and purchase agreements (GSPAs). The gas consumption control policy applied from September 1 to 30, 2026.
“The sudden restrictions on gas supplies have forced industries to shut down some of their production lines, threatened their ability to fulfill commitments to contracted customers, and have already begun to trigger layoffs,” Yustinus said in an official statement on Wednesday, September 16, 2026.
Industrial capacity utilization has also reportedly come under pressure. This is because natural gas is a primary energy source that is difficult to replace in several manufacturing sectors.
“Industrial capacity utilization has ultimately been restricted to just 80%,” Yustinus said.
Earlier reports indicated that Minister of Energy and Mineral Resources Bahlil Lahadalia had raised the possibility of not renewing gas export contracts with neighboring countries if domestic demand remained unmet.
The proposal was made in response to President Prabowo Subianto’s remarks that Indonesia must adopt a survival-oriented position in facing global pressures. According to Bahlil, the president’s directive must be translated by ministries into concrete programs that ensure national interests remain protected.
“I am also considering not renewing gas export contracts with neighboring countries. We have to survive, and we must meet domestic demand first,” Bahlil said on Wednesday, October 21, 2026.
Minister Bahlil also stated that President Prabowo had instructed all cabinet members to work quickly and ensure that programs were implemented in accordance with applicable laws.
“The key is to work quickly, execute quickly, and not be slow, while complying with the rules and not violating them,” Bahlil emphasized.
For context, industries that use natural gas continue to face pressure due to limited supplies. This situation has prompted several industries, including the ceramics and glass sectors, to begin reducing production. Business operators are concerned that inadequate gas supplies could disrupt industrial operations, increase costs, and potentially lead to workforce reductions.
The option of halting gas exports was also raised by Bahlil Lahadalia, Coordinating Minister for Downstreaming and Energy Transition and concurrently Minister of Energy and Mineral Resources. Bahlil said the government may decide not to renew gas export contracts with neighboring countries if domestic demand has not yet been met.
