Cheap Gas Absorption Rate For Industry Has Not Reached 80 Percent

Illustration. (Photo: Doc. Antara)

JAKARTA - The Downstream Oil and Gas Regulatory Agency (BPH Migas) revealed that the distribution of cheap gas for seven industrial sectors or the Certain Natural Gas Price (HGBT) program is still not optimal.

Head of BPH Migas, Erika Retnowati said, the average absorption of HGBT has not reached 80 percent.

"We found that the distribution of HGBT gas was not yet optimal. On average, the percentage was still below 80 percent for HGBT gas absorption," Erika said in a Hearing Meeting with Commission XII DPR RI, Monday, February 10.

Previously, the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed that he was working on the possibility of cutting the number of recipients of the industry cheap gas or the Certain Natural Gas Price (HGBT).

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

If in the evaluation it is found that there is a company experiencing an increase in the rate of return (IRR), it is possible that the company will be removed from the list of HGBT recipients.

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

Regarding the request of business actors to continue this cheap gas policy, Bahlil said, it is only natural for entrepreneurs to do this.

Just so you know, based on the Decree of the Minister of Energy and Mineral Resources of the Republic of Indonesia Number 91.K/MG.01/MEM.M/2023 concerning Certain Natural Gas Users and Certain Natural Gas Prices in the Industrial Sector, HGBT will end on December 31, 2024.

This cheap gas policy is aimed at seven industrial groups, namely the fertilizer industry, petrochemicals, oleochemicals, steel, ceramics, glass glasses, and rubber gloves.