JAKARTA - The Ministry of Industry (Kemenperin) said that uncertainty regarding cheap gas prices or HGBT has caused investment cancellation of IDR 300 trillion in a number of industrial areas (KI).

Secretary-General of the Ministry of Industry Eko SA Cahyanto said that gas price stability is very crucial to maintain investor confidence so that it continues to invest in the country.

"In a meeting with the Coordinating Ministry for the Economy, it was revealed that there were Rp. 300 trillion in investments that had entered, and had even bought land. However, in the end, it canceled the construction of the factory due to the unclear price of this gas. It is a shame," said Eko in the 2025 National Dialogue agenda with the theme Optimization of Industrial Estates: Efforts to Achieve the 8 Percent Economic Growth Target in the Prabowo Government Era Through the Manufacturing Industry at the Ministry of Industry's office, Jakarta, Thursday, February 6.

Eko said the Ministry of Industry continues to encourage HGBT policies not only to be enjoyed by seven industrial sectors.

Currently, HGBT recipients are limited to the ceramic, fertilizer, petrochemical, oleochemical, steel, glass and rubber gloves industries, with gas prices in the range of 6-6.5 US dollars per MMBTU.

"We propose that tenants in industrial areas can also enjoy HGBT, not just these seven sectors," he said.

On the same occasion, the Chairman of the Association of Industrial Estates (HKI) Sanny Iskandar highlighted the inequality of gas quotas for industry players who enjoy HGBT.

According to him, PT Perusahaan Gas Negara (Persero) or PGN set a quota that only reached around 45 percent of industrial needs.

"After a long struggle, HGBT was indeed extended. However, the quota given was only 40 to 45 percent. It also depends on PGN," he explained.

Sanny added that the industrial location also affected gas prices.

The closer it gets to gas sources, the cheaper the price gets.

In contrast, industries that are far from gas sources must pay more expensive, especially if use exceeds the set quota.

"Unlike electricity, which rates uniformly throughout Indonesia, gas prices rely heavily on distance from sources. If usage exceeds the 40-45 percent quota, prices could jump to 16 US dollars per MMBTU," he said.


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