Indonesia's Revenue Is Lost Due To HGBT Policy, Commission VII Opens Voice

JAKARTA - Chairman of Commission VII DPR RI, Sugeng Suparwoto opened his voice regarding the alleged reduced state revenue due to the policy of low-cost gas or Certain Natural Gas Prices (HGBT) for the industry.

Just so you know, the cheap gas price policy is imposed on 7 industrial sectors, namely fertilizer, petrochemicals, oleochemicals, steel, ceramics, glasses, and rubber gloves in accordance with Presidential Regulation 121/2020.

Sugeng confirmed that state revenues were indeed reduced due to this policy.

"That's right. The volume absorbed at this special price has decreased tens of trillions of tax revenue," he said at Energy CORner, Tuesday, March 26.

However, if you look at the study conducted by the University of Indonesia Institute for Economic and Community Research (LPEM UI) together with the Ministry of Industry, it shows that this policy has a good impact on the seven industrial sectors involved.

"Only is it on a value whether it becomes commensurate between what is spent as capital in the industry with an increase in industrial capacity in taxes and so on?" continued Sugeng.

Sugeng also admitted that the policies that were implemented in the era of the Covid-19 pandemic in 2020 did provide an increase in benefits to the industry. For this reason, he encouraged a re-evaluation before this policy continued.

"Maybe the impact has not been felt at all and now we have to evaluate and things that are common in our opinion, but from the other side, the industry continues to expect it because one of the main factors in the industrial sector is gas or gas availability," he said.

As a partner for the Ministry of Energy and Mineral Resources and the Ministry of Industry, Sugeng said that his party continues to encourage various aspects to be carried out related to the use of natural gas, including encouraging more qualified infrastructure development.

Moreover, continued Sugeng, the 6 dollar price set only applies to the industrial level so that there is an imposition of a toll fee.

"We are fixing infrastructure so that national gas absorption power for the industry increases. Now we are grateful for 60 percent of the national gas for domestic utilization, including for the 7 industries," concluded Sugeng.

Previously, the Deputy for Finance and Commercialization of SKK Migas, Kurnia Chairi, noted that Indonesia had the potential to lose 1 billion US dollars or equivalent to Rp. 15.67 trillion due to the policy of Certain Natural Gas Prices (HGBT).

Kurnia added that this figure is a temporary number and will still be calculated further. He also said that this reduced state revenue is expected to be compensated for the increased performance and impact of the multiplier effect felt from industries that utilize HGBT.