HGBT Supply Reduced, Ministry Of Industry Reminds The Threat Of Competitiveness For The Indonesian Industry To Weaken To Layoffs

JAKARTA - Industry players highlight the issue of the supply of Certain Natural Gas Prices (HGBT) which are considered unstable and burdensome for them.

Even though this program has been set by the government through a Presidential Regulation (Perpres) at a price of around US$6.5 per MMBTU.

HGBT is a government program that provides cheaper gas prices for a number of industries. This program has been running since 2020 and has proven to help the industry maximize its production.

Spokesperson for the Ministry of Industry (Kemenperin) Febri Hendri Antoni Arif said the gas price spike would affect the price of the final product.

"If raw materials rise, product prices will automatically also increase. As a result, the competitiveness of the national industry will weaken and lose to compete with products from abroad," Febri said in a statement quoted on Monday, August 18.

According to him, the HGBT restriction policy contradicts President Prabowo Subianto's policy direction in Astacita, which emphasizes energy, food independence, industrial downstream and job creation.

"The reduction in supply will have an impact on the availability of fertilizers, which are strategic components for food security. The autochemical industry is also affected, so that domestic needs can be disrupted," he said.

The Ministry of Industry stated that the reasons for limited gas supply did not make sense and were far-fetched.

"If the supply is limited, why can the industry still buy gas when the price jumps to 17 US dollars per MMBTU? If gas costs 6.5 US dollars, the supply is limited. This is questionable," said Febri.

Febri said HGBT restrictions not only threaten production continuity, but also have the potential to reduce factory utilization, even to business closures and layoffs of industrial workers.

"More than 100,000 workers in the beneficiary sector of HGBT will be affected. If the industry reduces capacity or closes factories, layoffs cannot be avoided," he said.

He assessed that natural gas has a vital role, both as raw material and as an energy source in the production process. fertilizer industry, glass, ceramics, steel, oleochemicals to rubber gloves.

Although the state lost part of revenue from the HGBT program, according to Febri, the added value generated from downstream products is much greater.

"Every Rp1 that is lost upstream can be compensated for Rp3 from the creation of the added value of downstream products for the HGBT user industry. Therefore, it is wiser if state revenues are focused on downstream product taxes resulting from downstream downstream HGBT gas downstream, not on upstream gas," explained Febri.

Febri is optimistic that if the price of HGBT is maintained at the level of 6.5 US dollars per MMBTU with stable supply, and tax revenues are focused on downstream products, the national economic growth target of 8 percent launched by President Prabowo can be achieved.

"God willing, with the right policy, the growth target is not just a dream, but can really be realized," he said.

Previously, PT Perusahaan Gas Negara Tbk (PGN) reported that currently there was a decrease in gas volume distributed in August 2025 by gas suppliers or Cooperation Contract Contractors (KKKS) in upstream oil and gas.

PGN Corporate Secretary Fajriyah Usman said the decline in supply then had an impact on gas flow for a while to some customers of PGN gas in the West Java region.

Including, it is also estimated that it will have an impact on the HGBT recipient industry.

"This condition is due to unplanned operational maintenance (unplanned) in several gas suppliers as well as several additional gas supply plans that are still in progress," said Fajriyah in an official statement, Thursday, August 14.

Fajriyah explained that currently PGN has not yet received additional cargo of liquid natural gas or domestic Liquefied Natural Gas (LNG) for the August 2025 period as another alternative source.