The Ministry Of Energy And Mineral Resources Has Not Planned To Provide Certain Natural Gas Price Incentives

Natural gas (intermediate illustration)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) through the Director General of Oil and Gas (Migas) Tutuka Ariadji stated that his party could not confirm that it would provide incentives for certain natural gas prices (HGBT). Currently, HGBT is still limited in 7 sectors at a price of 7 US dollars per MMBTU such as the fertilizer industry, petrochemicals, oleochemicals, steel, ceramics, glass and rubber gloves.

Meanwhile, based on the Decree of the Minister of Energy and Mineral Resources Number 134 of 2021, the HGBT policy will end in 2024.

According to Tutuka, HGBT evaluation should not cause losses to the state and it is necessary to consider limited reserves and will only be abundant by 2030 considering that there are still many gas sources that have not done on stream.

"We have to evaluate it well because it is first reserve, or there is still state revenue, right, we can't reach (receipt) the state is minus," said Tutuka to the media quoted Wednesday, February 21.

For this reason, continued Tutua, in the evaluation process, it must be carried out with great caution so as not to cause losses to the state.

Tutuka said that his party is currently preparing evaluation guidelines for the Minister of Energy and Mineral Resources Decree number 134 so that it can regulate the impact of HGBT implementation, including the tax to be imposed. In addition, his party has also asked the Ministry of Industry (Kemenperin) to conduct an evaluation.

"Yes, we ask the Ministry of Industry to conduct an evaluation. This is asking the Ministry of Industry to answer. We are trying to support HGBT but precisely in industries in need," continued Tutuka.