Indonesia’s gas pricing plans face headwinds
Indonesia’s LNG infrastructure. The country’s gas consumption is rising, squeezing its exports.
Indonesia’s plans to encourage more upstream investment, cut energy subsidies and move towards market-based pricing appear to be facing problems, after the country’s Ministry of Industry proposed that domestic gas prices be reduced for industrial users to make the fuel more competitive.
Industry Minister Saleh Hussein called for gas pricing terms that are friendly to industrial users during a speech at an energy forum in Jakarta this week, in which he also highlighted the need for better access to gas so Indonesia can meet its economic growth targets.