Jakarta – The government has again demonstrated its commitment to protecting workers by lowering the price of liquefied natural gas (LNG) for the industrial sector. This policy is expected to maintain industrial sustainability and prevent layoffs that threaten tens of thousands of workers.
Andi Gani Nena Wea, President of the Confederation of All Indonesian Trade Unions (KSPSI), said the government’s swift response demonstrates its commitment to the aspirations of unions and the plight of workers. He stated that the decision provides hope for industry to continue operating while maintaining job stability.
“We express our extraordinary appreciation for the government’s swift decision to lower industrial gas prices,” said Andi Gani.
According to him, reducing industrial gas prices is a crucial step in saving tens of thousands of workers from the threat of layoffs. He explained that the policy was born from intensive communication and coordination between labor unions, the government, and the Indonesian House of Representatives (DPR RI), resulting in a solution that accommodates the interests of the business sector while protecting workers.
“I am very happy and grateful that this struggle was not in vain,” he said.
He revealed that the previously high price of industrial gas had the potential to trigger a significant wave of layoffs. According to KSPSI (Indonesian Labor Union Association), approximately 55,000 workers are vulnerable if industrial energy costs are not addressed immediately.
“We have noted the potential threat of layoffs of 55,000 workers, and layoffs have already occurred at PT Granito Keramik,” he said.
With the reduction in industrial gas prices, Andi Gani hopes that companies previously facing operational cost pressures will be able to increase production again. He is optimistic that government policies will encourage companies to cancel plans for closures and mass layoffs, thereby ensuring worker welfare.
“I sincerely hope that lowering industrial gas prices will save industries planning to close. It can also save the lives of tens of thousands of workers facing mass layoffs,” he said.
Andi Gani also expressed his appreciation to President Prabowo Subianto’s administration for its cross-ministerial and institutional coordination, which he deemed successful in providing concrete solutions for the business world and labor unions.
“Special thanks to President Prabowo Subianto, Deputy Speaker of the House of Representatives Sufmi Dasco Ahmad, the Chief of Police, the Minister of State Secretary, the Minister of Manpower, and the Minister of Energy and Mineral Resources who have been in intensive communication to find a solution,” Andi Gani concluded.
Meanwhile, the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, said that the government has officially lowered the LNG price for industry to USD 13 per MMBTU from the previous USD 20–23 per MMBTU.
This policy is a direct directive from President Prabowo Subianto, who places protection of industrial sustainability and job sustainability as top priorities.
“Based on the President’s directive, which states that he is truly interested in protecting industry and jobs, we were instructed to provide input from industry at approximately USD 15-16 per MMBTU. However, after calculating and agreeing to the President’s approval, the rate was lowered to USD 13 per MMBTU. So, from USD 20-23 per MMBTU, it has now been reduced to USD 13 per MMBTU,” Bahlil said.
This policy is expected to provide momentum for the industrial sector to increase productivity while strengthening worker protection by creating a more conducive business climate.