Bahlil Opens Opportunities For Cuts For Industrial Cheap Gas Recipients

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed that he is currently working on the possibility of cutting the number of recipients of the cheap gas industry or the Specific Natural Gas Price (HGBT).

"There is a possibility (reducing), we are still discussing it, but it's not final yet," Bahlil told the media crew at the BPH Migas Building, Tuesday, January 7.

Bahlil said that his party would continue to conduct studies on the impact of the policy on cheap gas recipients.

In fact, he said, the purpose of HGBT is to increase the value of the recipient industry business.

If in the evaluation it is found that there is a company experiencing an increase in the rate of return (IRR), it is possible that the company will be removed from the list of HGBT recipients.

"But if those who still need it and we see the IRR are not good, we will keep it," he continued.

Regarding the request of business actors to continue this cheap gas policy, Bahlil said, it was natural for entrepreneurs to do this.

"As a former businessman, can I beg you? Yes, we ask that we consider the request," Bahlil added.

Just so you know, based on the Decree of the Minister of Energy and Mineral Resources of the Republic of Indonesia Number 91.K/MG.01/MEM.M/2023 concerning Certain Natural Gas Users and Certain Natural Gas Prices in the Industrial Sector, HGBT will end on December 31, 2024.

This cheap gas policy is aimed at seven industrial groups, namely the fertilizer industry, petrochemicals, oleochemicals, steel, ceramics, glass glasses, and rubber gloves.