Worried That Manufacturing Will Drop, The Ministry Of Industry Emphasizes The Importance Of The Industrial Cheap Gas Program To Continue

Spokesperson for the Ministry of Industry, Febri Hendri Antoni Arif. (Theresia Agatha/VOI)

JAKARTA - The Ministry of Industry (Kemenperin) emphasized that the importance of the Certain Natural Gas Price (HGBT) program or cheap natural gas prices for industry will continue.

The reason is, the HGBT program is very utilized by industrial players, especially 7 sub-sectors, namely fertilizers, petrochemicals, oleochemicals, steel, ceramics, glass glasses and rubber gloves.

Spokesperson for the Ministry of Industry, Febri Hendri, said that if the HGBT program was not continued, it was feared that many industries would fall, resulting in a decline in the manufacturing index or the Purchasing Manager Index (PMI).

"The results of the UI economist research also state that if the price of industrial raw material gas increases, PMI will be depressed and maybe contractible. But if gas prices go down, industry is excited and PMI can go up. Of course we hope that gas prices for the industry will remain at the price of 6 US dollars and supply is smooth," said Febri when met by reporters at the Ministry of Industry's office Monday, January 13.

HGBT itself is the government's policy to set cheaper natural gas prices for several industrial sectors.

The policy, which has been in effect since 2020 for seven industrial sectors with a gas price of 6 US dollars per MMBtu, has ended on December 31, 2024.

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia said his party was working on the possibility of cutting the number of recipients of cheap industrial gas or HGBT.

"There is a possibility (reducing). We are discussing it, but it's not final yet," Bahlil told the media crew at the BPH Migas Building, Tuesday, January 7.

Bahlil said that his party would continue to conduct studies on the impact of the policy on cheap gas recipients.

In fact, he said, the purpose of HGBT is to increase the value of the recipient industry business.

However, if in the evaluation it is found that there are companies experiencing an increase in the rate of return (IRR), then there is a possibility that the company will be removed from the list of HGBT recipients.

"But, if those who still need it and we see the IRR is not good, we will keep it," he said.