JAKARTA: Deputy House of Repre-sentatives Speaker Sufmi Dasco Ahmad on Tuesday called the chief executive of state energy company Pertamina during a labour union gathering, pressing for solutions to soaring industrial gas prices that unions say could trigger mass layoffs and force major ceramic manufacturers to halt operations.
Speaking at the annual congress of the Confederation of Indonesian Trade Unions (KSPI), Dasco said mounting concerns over industrial gas costs “had overshadowed” his prepared remarks and prompted him to seek an immediate response from state-owned oil and gas giant Pertamina president director Simon Aloysius Mantiri.
“Before I give my speech, I want to ask first: is there a solution to the industrial gas (prices) problem?” Dasco said as he placed the call on stage, as quoted by Kontan.
The intervention comes as labour groups warned that two major ceramic producers, Milan Keramik and Mulia Keramik, face an imminent shutdown in Bekasi, West Java, potentially putting about 55,000 jobs at risk.
The All-Indonesian Workers Union Confederation president Andi Gani Nena Wea in the same occasion blamed the crisis on industrial gas prices that had surged to around US$23 per million British thermal units (mmBtu), far above the government’s subsidised gas price of US$6 per mmBtu under its designated gas pricing scheme for selected industries.
The issue has emerged as a flashpoint for manufacturers that are already grappling with weak demand and rising production costs.
Labour groups said elevated gas prices are eroding competitiveness across energy- intensive sectors, including ceramics and textiles, increasing pressure on companies to cut output or relocate production.
Pertamina would immediately coordinate with gas distributor PGN to address the issue and explore pricing adjustments tied to liquefied natural gas supply costs, Simon said.
“We will coordinate with PGN and do our best to improve the situation and support industry with more appropriate pricing,” he said during the call.
Dasco further urged Pertamina and labour representatives to meet within days to prevent layoffs from materialising.
“We need to mitigate this.
“Fifty-five thousand workers are reportedly at risk of losing their jobs, and that is deeply concerning,” Dasco told Simon, proposing talks between Pertamina and union representatives to find a solution.
The gas price dispute is expected to feature prominently at the inaugural meeting later this week of the government’s so-called “layoff and workers welfare” task force, established by President Prabowo Subianto as part of his promises in a May Day rally to address mounting concerns over job losses across industries.
The task force has the legal authority to coordinate across ministries and intervene in labour issues, including mediating layoffs, reassigning workers and stepping in before companies shut down, The Jakarta Post previously reported.
KSPI president Said Iqbal, who is also a special presidential adviser for employment and workers’ welfare, said the task force would discuss measures to prevent layoffs.
These include support for ceramic producers struggling with energy costs and efforts to address potential job cuts at automotive component manufacturers reportedly considering relocating operations to Vietnam. — The Jakarta Post/ANN
