Competitive Power Dongkrak, Ministry Of Industry Hopes Certain Natural Gas Price Programs Are Expanded To Industry

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita. Photo: Theresia Agatha/VOI

The Ministry of Industry (Kemenperin) is working on expanding recipients of the Certain Natural Gas Price (HGBT) program or cheap gas for industry.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said that his party is still fighting for the expansion of the recipients of the cheap gas program for all processing industries that use gas.

"When it comes to HGBT, it's, right, the gas price is 6 dollars. Well, the Ministry of Industry wants to immediately convey no one left behind, any company or industry that requires gas, we don't see how much gas it takes, he must be included in the HGBT scheme," said Minister of Industry Agus at the DPR RI Building, Jakarta, on Thursday, August 31.

Minister of Industry Agus said that the HGBT policy of 6 US dollars per million metrics of British thermal units (MMBtu) for 7 industrial sectors is considered important in order to increase the competitiveness of the domestic industry. For this reason, he requested that all industries using natural gas get these benefits.

"So, all industries must be included in the HGBT scheme, so that their products still have high competitiveness, so we don't talk about 7 sectors," he said.

In addition, Agus confirmed that the current implementation of the HGBT policy was not optimal in the 7 HGBT recipient sectors. This is due to concerns about the insufficient supply or gas supply on the island of Java.

"If we count from outside Java, I think the gas supply has no problem supplying industrial needs," he said.

Furthermore, Agus hopes that all industrial sectors including food and beverages, transportation equipment, chemicals, fertilizers, ceramics, and others can enjoy cheap gas price policies.

"Well, if we have the same commitment, all ministries/agencies must go that way, the 6 dollars is to encourage or increase competitiveness," he added.

Previously reported, the Ministry of Industry (Kemenperin) said that the policy for Certain Natural Gas Prices (HGBT) intended for several sub-sectors of the manufacturing industry was still not optimal. This is because there are still a number of problems in its implementation

Meanwhile, industry players hope that HGBT can be implemented as well as possible to support competitiveness.

Spokesperson for the Ministry of Industry, Febri Hendri Antoni Arif, said that the first problem faced in implementing the HGBT policy was that the natural gas price that had to be paid by the recipient industry still exceeded the provisions.

More than 95 percent of companies designated as recipients of HGBT are based on the Decree of the Minister of Energy and Mineral Resources Number 91 of 2023 still receiving natural gas prices above 6 US dollars/MMBTU.

"HGBT continues to rise every time there is a new determination. In addition, certain natural gas prices received by companies are not uniform / not the same even though they are in the same area," Febri said in his official statement, quoted Friday, August 4.