Minister Of Industry Agus Ensures Additional Gas Supply For National Industry Genjot

Minister of Industry Agus Gumiwang Kartasasmita (Photo: Antara)

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said that he had received guarantees from the Ministry of Energy and Mineral Resources regarding additional gas supply that would soon be available for certain natural gas price policies (HGBT).

The additional supply is expected to be used to strengthen the energy needs of the industrial sector in Indonesia, thus supporting the continuity of production and cost efficiency in the midst of efforts to maintain national manufacturing competitiveness.

"The addition is that I have received guarantees from the office of the Ministry of Energy and Mineral Resources in the near future, Indonesia will have additional supplies from gas," Agus said at a press conference at the Ministry of Industry's office, Jakarta, Monday, October 20.

According to Agus, previously the HGBT policy had been conveyed, it was still an important concern for the government. Thus, the continuity of the industrial gas supply must be encouraged.

Previously, the Ministry of Industry (Kemenperin) was worried that a spike in layoffs would occur in the industrial sector due to the tightening of the implementation of HGBT

The Ministry of Industry noted that the total number of workers who depend on the sustainability of HGBT supply in the industrial sector reaches 134,794 people.

"This is a serious alarm. Every policy involving industrial gas supply must consider its implications for business continuity and the welfare of hundreds of thousands of families living from this sector," said Ministry of Industry spokesman Febri Hendri Antoni Arif as quoted from his written statement, Friday, August 15.

Febri admitted that his party received many letters and reports from the HGBT user industry which felt the impact of limiting gas purchase volume with HGBT to 48 percent from the previous 60 percent imposed by PT Perusahaan Gas Negara Tbk (PGN).

"In fact, HGBT is the President's decision which has determined both the price of 6.5 US dollars per MMBtu and the sustainability of its supply. No party or institution should try to subordinate to the President's order in the form of increasing prices above 6.5 US dollars and limiting its supply," he said.

Of the hundreds of thousands of people threatened with layoffs, the details are the fertilizer industry (10,420 workers); petrochemical industry (23,006 workers); the autochemical industry (12,288 workers); steel industry (31,434 workers); ceramic industry (43,058 workers); glass industry (12,928 workers); and the rubber gloves industry (1,660 workers)

The tightening of gas supply at special prices, according to Febri, will have a broad impact on the sustainability of the manufacturing industry. Supply disruption and high gas surcharge, such as the tariff imposed by PT PGN of 16.77 US dollars per MMBTU, burdening business actors, especially in the energy-intensive sector, such as the ceramics, glass, steel, fertilizers, petrochemicals and autochemicals industry.

"The increase in prices or reduced supply of HGBT will immediately erode profit margins, reduce factory utilization and in the long term suppress investor interest in investing in the manufacturing sector," said Febri.