Urge Cheap Gas Prices To Take Effect Immediately, Minister Of Industry: Because Factories Must Keep Running

JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita hopes that the Certain Natural Gas Price (HGBT) program or cheap gas prices for the industry will be implemented immediately.

According to Agus, the industry must immediately take advantage of this program so that it can continue to produce.

"I think it must take effect immediately, yes. Because the factory, right, must continue. So, the gas needed, right, must still be available and available," said Agus at the office of the Ministry of Energy and Mineral Resources, Jakarta, Friday, January 17.

HGBT itself is the government's policy to set cheaper natural gas prices for several industrial sectors.

The policy, which has been in effect since 2020 for seven industrial sectors with a gas price of 6 US dollars per MMBtu, has ended on December 31, 2024.

The Ministry of Energy and Mineral Resources has also given a signal that the HGBT program for the seven industrial sectors will continue this year. However, it is not certain when it will take effect.

Therefore, industrial gas prices are subject to commercial tariffs. "This is a problem with many industries whose commitments are low from PGN," said Agus.

Previously, the Ministry of Industry (Kemenperin) emphasized that the importance of the HGBT program or cheap natural gas prices for industry would continue.

The reason is, the HGBT program is very utilized by industrial players, especially seven sub-sectors, namely fertilizer, petrochemicals, oleochemicals, steel, ceramics, glass glasses and rubber gloves.

Spokesperson for the Ministry of Industry, Febri Hendri, said that if the HGBT program was not continued, it was feared that many industries would fall, resulting in a decline in the manufacturing index or the Purchasing Manager Index (PMI).

"The results of the UI economist research also state that if the price of industrial raw material gas increases, PMI will be depressed and maybe contractible. But if gas prices go down, industry is excited and PMI can go up. Of course we hope that gas prices for the industry will remain at the price of 6 US dollars and supply is smooth," said Febri when met by reporters at the Ministry of Industry's office Monday, January 13.