Save Industry, Cheap Gas Price Policy Will Not Continue Will Cause Fatal

JAKARTA - General Chairperson of the Earth Gas User Industry Forum, Yustinus Gunawan, revealed that the cheap gas policy for the industry or the Certain Natural Gas Price Policy (HGBT) program of US$6 per MMBTU is considered a savior.

According to him, the Minister of Energy and Mineral Resources Decree number 91 of 2023 concerning Certain Natural Gas Users and Certain Natural Gas Prices in the Industrial Sector proves that natural gas, which was introduced to industry, indeed brings transformation not only to operations but also to increased industrial competitiveness.

"Since being effective in 2020, HGBT has been directly tested by the pandemic and the industry has felt the vitals of natural gas in encouraging the industry," he said in the Energy Corner quoted Monday, May 13.

Yustinus said, actually the reindustrialization has occurred since 2020 since the HGBT was carried out and is reflected through the Manufacturing PMI index which has continued to be expansive for 32 consecutive months.

Previously, he continued, for the past 10 years when natural gas rose there was reindustrialization until 2019. He said that if the government did not continue the HGBT program, it would be fatal to the domestic industrial sector.

"It would be very fatal if the HGBT was not continued for this vital energy," added Yustinus.

As a business actor, Yustinus also appreciated the statement of the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif who gave the government signal that he would continue the HGBT program.

Previously, Arifin Tasrif opened the opportunity to extend the cheap gas price policy for the industry. One of the considerations is its impact on production costs.

It is known, the policy refers to the Specific Natural Gas Price (HGBT) for 7 industrial groups. Namely, fertilizers, petrochemicals, oleochemicals, steel, ceramics, glass, and rubber gloves.