HGBT Policy Ratified, Kadin And Inaplas Appreciate Government Support For The Industrial Sector

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) officially continues the policy of certain natural gas prices (HGBT) with a new scheme for seven industrial sectors, namely fertilizer, petrochemicals, oleochemicals, steel, ceramics, glass, and rubber gloves. A total of 253 industrial users can now enjoy a more competitive natural gas price policy.

The sustainability of the HGBT policy was determined through the Decree of the Minister of Energy and Mineral Resources Number 76.K/MG.01/MEM.M/2025 concerning the Second Amendment to the Decree of the Minister of Energy and Mineral Resources Number 91.K/MG.01/MEMM.M/2023. The Minister of Energy and Mineral Resources, Bahlil Lahadalia signed this decision on Wednesday (26/2), as a follow-up to President Prabowo Subianto's direction.

"According to President Prabowo's direction, HGBT is distinguished based on the use of natural gas as fuel for 7 US dollars per MMBTU and for raw materials of 6.5 US dollars per MMBTU," said Bahlil, Friday, February 28.

This policy was welcomed by industry players. Deputy Chairperson of the Indonesian Chamber of Commerce and Industry (KADIN), Saleh Husin, said this decision provides certainty for the industry and encourages national competitiveness.

"We from the Indonesian Chamber of Commerce and Industry welcome the HGBT policy that has been set by the government. This policy provides certainty for the industry and encourages national competitiveness," he said.

Saleh assessed that the Decree of the Minister of Energy and Mineral Resources was very beneficial for the industrial sector which depended on natural gas.

"Of course the benefits are very great for the domestic manufacturing industry as well as providing certainty for the industry and strengthening national competitiveness. In addition, in order to support the use of clean and environmentally friendly green energy, as well as so that the products produced can compete with the same products from other countries, especially ASEAN regional countries that are our competitors," he concluded.

Furthermore, Saleh hopes that this incentive will be expanded to other industrial sectors that are affected by high energy costs and strengthened by controlling imports of finished goods through the Commodity Balance and Trade Remedies. According to him, with this step, the domestic industry can be better protected from the onslaught of cheap imported products, especially from China, ASEAN, and other countries, so that the 8 percent economic growth target can be more easily achieved.

"We, domestic industry players, must and must support President Prabowo's policies and visions in encouraging economic growth of up to 8 percent. One of the steps to achieve this is to ensure that domestic industries grow at least 10 percent. Currently, the contribution of the manufacturing industry to national GDP is still around 19 percent, whereas ideally it must exceed 29 percent. For this reason, in the future we really hope that the HGBT beneficiary industry will be expanded so that products from our domestic industry have strong competitiveness, "said Saleh.

In line with KADIN, Deputy Chairperson of the Indonesian Olefin, Aromatic, and Plastic Industry Association (INAPLAS), Edi Rivai, also appreciated this policy. He expressed his gratitude to President Prabowo and the government for the policies that support the sustainability of the national petrochemical industry.

INAPLAS conveys its highest appreciation and gratitude to President Prabowo Subianto and government officials, especially the Minister of Energy and Mineral Resources, Mr. Bahlil Lahadalia, the Minister of Industry, and the Minister of Finance and others for the issuance of the Decree of the Minister of Energy and Mineral Resources Number 76.K/MG.01/MEM.M/2025 regarding the continuation of the Limited Natural Gas Price (HGBT) policy. This decision is a strategic step in ensuring certainty of business for industry and increasing competitiveness in the national petrochemical sector in the midst of global competition," he said.

According to Edi, this policy helps Indonesia's petrochemical industry become more competitive, especially in dealing with over-supply raw materials from the international market. With more competitive gas prices, the national petrochemical industry can compete with producers from countries that have lower energy prices, such as the Middle East, the United States, and China, as well as countries in free trade agreements (FTA).

Edi also added that this policy has the potential to increase exports of Indonesian petrochemical products, replace imports, and strengthen Indonesia's position in the global supply chain. However, he hopes that the government can also strengthen the control of raw materials and finished goods that can be produced domestically, so as not to be disrupted by cheap imports and unhealthy trade practices.

"We hope that the government in particular, the Ministry of Industry and Trade can also strengthen policies for controlling raw materials and finished goods that can already be produced domestically, such as plastic raw materials for LLDPE, Polypropylene, PVC, and Polystyrene from the onslaught of cheap imported goods and the practice of unfair trade. This can be done through the new Commodity Balance proposed scheme and the smooth support of Trade Remedies proposed by INAPLAS for the investigation of anti dumping PP and LLDPE safeguards is ongoing at the KADI and KPPI of the Ministry of Trade, so that domestic industries can get fair protection and be able to develop more rapidly," he added.

The determination of this HGBT is expected to increase the competitiveness of domestic industries, which previously received natural gas prices in the range of 6.75 - 7.75 US dollars per MMBTU. This policy, continued Bahlil, is in line with Presidential Regulation Number 121 of 2020 concerning Stipulation of Natural Gas Prices, which aims to accelerate economic growth.

The government hopes that this policy can increase the competitiveness of the national industry in the global market, create more jobs, and make a positive contribution to the economy. In addition, this policy is also expected to be able to maintain the stability of domestic product prices so that they remain affordable for the community.