Ministry Of Industry Receives 10 Complaints On The Impact Of HGBT Tightening In Industry

Industrial Gas (Photo: dock. Antara)

JAKARTA - The Ministry of Industry noted that there have been about 10 official complaints from the industry regarding the limited supply of Certain Natural Gas Prices (HGBT).

HGBT is a government program that provides cheaper gas prices for a number of industries. The program has been running since 2020 and has proven to help the industry maximize its production.

The restrictions are considered to disrupt production sustainability as well as have the potential to reduce the competitiveness of the national industry.

Spokesperson for the Ministry of Industry Febri Hendri Antoni Arif said all complaints came from both direct companies and industrial associations.

"There have been almost 10 incoming complaints, both from the direct industry and from industrial associations. We will pay closer attention to incoming complaints, because the HGBT user industry is quite large and there are also a lot of user industries outside HGBT," said Febri as quoted from his written statement, Friday, August 22.

Febri said that his party opened the door as wide as possible for industrial companies to submit official reports through each sector coach regarding the limited gas supply.

"We invite companies or industry players to submit complaints to each sector coach, such as the cement, ceramic or glass industry to the Directorate of Non-Meambal Galiran Materials, while other sectors such as oleochemia and steel can report to the coaching unit," he said.

His party assessed that supply restrictions of up to 70 percent per day and the imposition of surcharge of up to 120 percent for gas use exceeding the quota are very burdensome for the industry.

In addition, gas supply at a price of 6.5-7 US dollars per MMBTU is rare, but gas prices above 14.8 dollars per MMBTU are smooth.

"If the industry buys gas at a price above 15 US dollars per MMBTU, the supply is available. However, if you buy at HGBT price of 6.5 US dollars per MMBTU, the supply is not available. What is it with gas producers upstream?" asked Febri.

According to Febri, the gas crisis has a wide impact, ranging from the production process, investment climate to employment, as found during a working visit to PT Doulton in Banten.

The company has laid off 450 employees due to an unstable gas supply. The employee's housing will be carried out until the gas supply returns to normal.

"In PT Doulton itself, as many as 450 workers were forced to be laid off after production operations were stopped due to gas supply restrictions," explained Febri.

Therefore, Febri asked that there be no more daily supply restrictions imposed by gas producers to the industry, so that the production process runs smoothly.

"The HGBT tightening should be lifted so that the gas supply returns to its original mechanism, without restrictions of up to 70 percent per day or price spikes of up to 120 percent," he said.

Moreover, according to Febri, gas supply problems can also hinder government priority programs, including President Prabowo Subianto's Astacita.

"This crisis has a huge impact on production, employment, and investment climates. In fact, it has the potential to hinder President Prabowo's Astacita target, including the construction program of 3 million houses," explained Febri.

If gas supply remains problematic, he continued, industrial product prices such as ceramics have the potential to soar, thus burdening the government in covering subsidies for people's housing programs.