Indonesia’s manufacturers hit hard by Middle East energy shock, domestic gas crunch

[JAKARTA] Indonesia’s manufacturers are being doubly squeezed as Middle East tensions drive up energy costs and a prolonged domestic gas crunch curbs supply. This is forcing many factories to scale back output.

Against that backdrop, many businesses are urging the government to curb exports and prioritise supply to fulfil local demand.

Industry players warn that the dual shock is compressing margins, disrupting production and eroding competitiveness at a time when manufacturers are already struggling to secure reliable gas supplies.