Will End This Month, How Will HGBT Continue?

JAKARTA - Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot Tanjung opened his voice regarding the continuation of the cheap gas price policy aka the Specific Earth Gas Price (HGBT) of 6 dollars per MMBTU which will end in December 2024.

Met at the Ministry of Energy and Mineral Resources building, Yuliot said that currently his party is still evaluating the continuation of the policy. The evaluated matters are in the form of gas supply and the needs of each entitled industry such as the fertilizer industry, petrochemicals, steel, oleochemicals, ceramics, glass, and rubber gloves.

"It is discussed again between internal availability and industrial needs," said Yuliot, Friday, December 13.

However, he assessed that the government should provide certainty to business actors by continuing the program

"It is still under evaluation. It should provide certainty to business actors that should continue," he added.

Yuliot said the Ministry of Energy and Mineral Resources still had to report the results of the evaluation to Indonesian President Prabowo Subianto for a joint discussion.

"We will see this first, it will be reported to the President first. The Minister (ESDM) will conduct discussions and also report to the President," said Yuliot.

Previously, the Ministry of Industry (Kemenperin) said that there were five legal bases related to the implementation of certain natural gas prices or HGBT to continue.

First, Presidential Regulation (Perpres) Number 40 of 2016 in conjunction with Presidential Decree Number 12 of 2020 concerning Stipulation of Natural Gas Prices.

Second, Regulation of the Minister of Industry (Permenperin) Number 18 of 2020 concerning Recommendations for Certain Natural Gas Users.

Third, Regulation of the Minister of Energy and Mineral Resources (PermenESDM) Number 15 of 2022 concerning Procedures for Determination of Certain Natural Gas Users and Prices in the Industrial Sector.

Fourth, the Decree of the Minister of Energy and Mineral Resources (KepmenESDM) Number 134K/2022 concerning Guidelines for Determination and Evaluation of Certain Natural Gas Users and Prices in the Industrial Sector and in the Field of Electricity Supply for Public Interests.

Finally or fifth, the Decree of the Minister of Energy and Mineral Resources (KepmenESDM) Number 89K/2020 in conjunction with 91K/2023 concerning Certain Natural Gas Users and Certain Natural Gas Prices in the Industrial Sector.