Firmly, Minister Of Industry Agus Wants The Cheap Gas Program To Continue

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita. (Photo: Theresia Agatha/VOI)

JAKARTA - The Ministry of Industry (Kemenperin) seeks a USD 6 per MMBTU Natural Gas Price (HGBT) program to continue.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said that his party had sent data on the evaluation of the implementation of HGBT according to the request of the Ministry of Energy and Mineral Resources.

Agus also said that his party wanted the HGBT program to be expanded to more than seven industrial sectors.

Currently, the HGBT recipient industry sector is the fertilizer industry, petrochemicals, steel, ceramics, glass, oleochemicals and rubber gloves.

"We will always fight for HGBT, we all understand the benefits of HGBT. So, if we have sent the evaluation letter desired by "ESDM". So, we hope that ESDM will immediately issue a policy to provide HGBT in accordance with the Presidential Decree, not to mention if we talk outside the 7 sub-sectors that I want," said Minister of Industry Agus at the Ministry of Industry office, Jakarta, quoted Wednesday, April 17.

"I don't want additionals. I want all sectors to benefit from HGBT not only seven, but only seven are still chaotic. Reports on the ground are extraordinary," he continued.

He hopes to meet with President Joko Widodo (Jokowi) in the near future.

Agus said Presidential Regulation (Perpres) Number 121 of 2020 concerning Amendments to Presidential Regulation Number 40 of 2016 concerning Stipulation of Natural Gas Prices is still valid.

"Hopefully in the near future (meeting Jokowi). The important thing is that the Presidential Regulation, right, there has been no change. The Presidential Regulation is still a living regulation that must be respected, carried out, carried out by all ministers," he added.

Meanwhile, based on data from the Ministry of Industry, the HGBT policy is greatly benefited by business actors. In 2023, the increase in taxes from the HGBT user industry will reach 32 percent compared to 2019.

Not only that, until 2023, it was recorded that an investment of IDR 41 trillion had been realized, an increase of 34 percent compared to 2019.

In fact, there is the potential for investment in the petrochemical, steel, ceramic and glass sectors amounting to IDR 225 trillion.

Another positive impact during 2020 to 2023 was an increase in exports of IDR 84.98 trillion, an increase in tax revenues of IDR 27.81 trillion, an increase in investment of IDR 31.06 trillion and a decrease in fertilizer subsidies of IDR 13.3 trillion.

"What must be considered is that HGBT has been able to increase APBN's revenue. Each expenditure of Rp. 1 is able to provide a replacement income for the state of Rp. 3," said Minister of Industry Agus Gumiwang Kartasasmita in a written statement, quoted Tuesday, April 2.

Agus added that his party noted that around 140 companies that had been recommended by the Ministry of Industry had not been determined to get HGBT.

A total of 33 companies are included in the seven recipient sectors in accordance with Presidential Regulation (Perpres) Number 121 of 2020 in conjunction with Presidential Decree 40 of 2016.

While the remaining 107 companies came from the 15 new sectors proposed by the Ministry of Industry.

"Industrial sectors, especially gas users, both as raw and energy materials, require sufficient supply and competitive prices in the long term," he said.

Therefore, the Ministry of Industry views the importance of more comprehensive arrangements in order to provide space for the industrial world in order to optimize production.