Directly Monitor The Implementation Of HGBT In East Java, Directorate General Of Oil And Gas: Two Companies Want To Directly Add Investment

JAKARTA - The Director of Oil and Gas Program Development at the Ministry of Energy and Mineral Resources, Dwi Anggoro Ismukurnianto, visited two industries that received incentives for the implementation of the Specific Natural Gas Price (HGBT) policy of 6 US dollars. This visit is part of monitoring the implementation of the policy.

"We need to see and know in detail how the HGBT recipient industry can use the gas provided to increase production, multiplier effect, increase employment, tax realization, and last but not least how industry can save energy and develop new investments. ," said Ismu in an official statement, Thursday, July 14.

In the development of the implementation of this policy, continued Ismu, there were additional proposals from the seven groups so that the number now reaches 240 industries. Of this amount, the Government evaluates the performance of the industry so that the utilization of HGBT is carried out optimally.

"Development of the industry is under the authority of the Ministry of Industry. However, the Ministry of Energy and Mineral Resources has the responsibility to collect what the industry has produced from the provision of certain natural gas prices," he said.

In general, based on presentations and discussions with the two companies, Ismu assessed that the HGBT award had been put to good use, and had a positive impact on the industry, the surrounding community in terms of employment and the economy, as well as investment.

"These two industries are quite good at maximizing HGBT. Ceramic companies will add new investments this year, as well as Asahimas plans to propose new investments in 2024," said Ismu.

The government has implemented the HGBT policy since 2020 to encourage accelerated economic growth and increase the competitiveness of the national industry through the use of natural gas in the national energy mix for power generation and industry, as well as ensuring the supply of natural gas at reasonable and competitive prices.

CEO of PT Platinum Ceramic Industry Liem May Tjoe appreciates the Government's policy by providing a gas price of US$6 per MMBTU for the ceramic industry so that it can compete with foreign companies.

"This decree on gas prices is very helpful and makes us more competitive and can better meet the needs of the community because with high gas prices, we cannot get the best price for ceramic consumers in Indonesia," he explained.

Prior to the regulation, he said, developing the ceramic industry was very difficult and new investments could not be made. However, with HGBT, the company can make innovations, energy efficiency by using energy-efficient machines, and energy efficiency.

"We also support the Government's program, namely energy efficiency through the use of PLTS with a power of 8.4 Mwp and are the users for the largest ceramic factory in Indonesia. In addition, the use of heat recovery technology in production machines with a minimum savings of 10 percent, as well as investments made in production machines, namely Kiln and Horizontal Drier with the latest technology for efficient use of gas energy of at least 15 percent," said Liem.

Director of PT Asahimas Flat Glass Teguh Ari Widodo expressed a similar appreciation for the incentives provided by the government. The support was felt to be very helpful, especially when they got it during the Covid-19 pandemic.

"We got HGBT in the midst of a pandemic and a sluggish economy. This government support means a lot to us and now as the pandemic begins to subside, glass sales conditions are starting to improve," he explained.

Asahimas hopes that this incentive can be sustainable because in the midst of global competition, energy costs also need government support.

The company also plans to make new investments in 2024 by increasing production capacity and it is hoped that the Government can ensure the stability of gas supply.