Ministry Of Industry Asks For Extended HGBT, ESDM Says This

JAKARTA - The Ministry of Energy and Mineral Resources through the Coordinator for the Preparation of the Oil and Gas Program of the Directorate General of Oil and Gas, Ministry of Energy and Mineral Resources Rizal Fajar Muttaqien, said that his party was still waiting for further evaluation regarding the policy of the Limited Natural Gas Price (HGBT) which had been running so far.

For this reason, he said, his party does not yet have a decision regarding the sustainability of the HGBT policy for the 7 industries that use cheap gas.

"We from ESDM are still waiting for a thorough evaluation of the implementation of the HGBT that has been running so far and of course when the HGBT is decided to continue, we are also paying attention to the availability of parts of the country used to adjust gas prices," Rizal said in a webinar investigating the Readiness of Gas Supply for the Industrial Sector and Power Plants, Wednesday, February 28.

Just so you know, based on the Decree of the Minister of Energy and Mineral Resources No. 134 of 2020, the HGBT policy itself is planned to end in 2024 but the Ministry of Energy and Mineral Resources has not yet decided regarding the continuation of this policy.

In fact, the Ministry of Industry has asked the Ministry of Energy and Mineral Resources to continue the HGBT policy.

Rizal said that his party expected an evaluation from each natural gas user.

He also ensured that later the performance of each HGBT user was not in accordance with the initial commitment, his party and the Ministry of Industry would reduce supply or even stop the cheap gas supply.

"Later, when there is performance from each HGBT user who is not in accordance with what was committed at the beginning regarding the multiplier effect, of course there is an evaluation from the Ministry of Industry to be able to continue or reduce supply or stop for the HGBT policy," explained Rizal.

Just so you know, currently HGBT is still limited in 7 sectors at a price of 7 US dollars per MMBTU, such as the fertilizer industry, petrochemicals, olechemicals, steel, ceramics, glass glasses and rubber gloves.

Previously, the Director General of Metal, Machinery, Transportation Equipment and Electronics Industry of the Ministry of Industry, Taufiek Bawazier, said that the expansion of the HGBT needed to be done. Because, it will provide many benefits for Indonesia.

"Ask to expand because the benefits are large, there is also added value for raw materials. This is part of the government to raise it," he said.

According to Taufiek, if the policy continues, it will be able to strengthen the national industry.

"We ask to continue so that the added value of the national industry is stronger, that is the first record and also availability or adequacy. Do not let the price be 6 US dollars but not enough," he said.