Minister Of Industry Agus: Investors Wait For The Sustainability Of The HGBT Program

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita. (Photo: Doc. ANTARA)

JAKARTA - The Ministry of Industry (Kemenperin) hopes that certain natural gas price policies (HGBT) will continue after 2024.

This incentive is an important stimulus to encourage investment into Indonesia.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said investment realization since HGBT was implemented has increased. Despite the weakening due to obstacles from the upstream side or industrial gas suppliers.

"There are also many potential investors who are still waiting to see if the HGBT policy will continue? Because this is a very interesting incentive. One of the keys to advancing is the condition for gas prices," Agus said in an official statement received by VOI, Thursday, May 30.

It is known, Presidential Regulation (Perpres) Number 121 of 2020 states that certain natural gas prices apply US$6 per MMBTU for 7 industrial sub-sectors. Agus ensured that the regulation was still active and should have been implemented.

However, the facts on the ground show that 7 industrial sub-sectors are still facing problems with the delay in gas supply due to the daily quota policy of gas suppliers, PT Perusahaan Gas Negara (PGN) Tbk. (PGAS).

"So, I don't understand that there is a part of the government that does not want to participate in the Presidential Decree for all reasons, even though we dare to break this reason. This means that this needs strong coordination," he said.

Based on data from the Ministry of Industry, HGBT has had an impact on the industrial sector in the form of added value which has increased by three times with a value of IDR 147.1 trillion as of March 2024.

On the other hand, the realization of industrial taxes also increased from 2020 after HGBT was implemented.

Meanwhile, in 2020 the value of industrial tax payments of IDR 27.9 trillion will increase to IDR 31.9 trillion in 2021. Then, the value will increase to IDR 49.7 trillion in 2022.

Meanwhile, in terms of investment realization, 7 sub-sectors increased, initially Rp52.38 trillion in 2020 to Rp57.6 trillion in 2021. Furthermore, in 2022 it was valued at Rp73.4 trillion.

"Why do we continue to lift this continuously? Because based on existing data, this HGBT program really helps the manufacturing industry, especially 7 sub-sectors that have benefited from the HGBT program," he said.