55,000 Workers Face Layoffs as Indonesia Tackles Industrial Gas Price Crisis

A severe industrial crisis looms in Indonesia as approximately 55,000 workers across the manufacturing sector face potential layoffs due to skyrocketing natural gas prices. The warning came from Andi Gani Nena Wea, President of the Confederation of All Indonesian Workers' Unions (KSPI), who presented the dire situation to Deputy Speaker of Indonesia's House of Representatives Sufmi Dasco Ahmad during a national workers' congress in Jakarta on June 23, 2026.

The ceramic and textile industries have been hit particularly hard by the surge in industrial gas costs. Andi Gani reported that two major ceramic factories in Bekasi have already closed, with others—including Milenium Keramik and Mulia Keramik—expected to follow suit imminently. The price of industrial gas has risen dramatically from approximately US$6 to US$23, a level manufacturers say is unsustainable given their dependence on gas as a primary energy source for production. Andi Gani warned that without swift intervention, mass layoffs could occur within the next 10 days.

Dasco responded immediately and decisively, telephoning Pertamina's Chief Executive Officer Simon Aloysius Mantiri during the congress session while attendees listened. In the call, Dasco stressed the urgency of the situation and expressed concern that the threatened job losses cannot be taken lightly. He requested that Pertamina engage with workers' representatives within 48 hours to develop a viable solution acceptable to all parties involved.

Dasco acknowledged the gravity of the situation, noting that initial measures to mitigate the crisis must be implemented quickly to prevent thousands of workers from losing their livelihoods. The deputy speaker proposed that representatives from Pertamina meet with labor union delegates within one to two days to explore concrete remedies. This high-level intervention reflects growing political concern over the potential economic and social impact of mass unemployment in key manufacturing sectors.