The government will maintain natural gas prices for 7 industries

JAKARTA (ANTARA) – The government has decided to maintain some natural gas (HGBT) prices or cheap gas prices below $6 per MMBTU (million British thermal units) for seven industrial groups. The decision was announced by Coordinating Minister for Economic Affairs Airlangga Hartarto after an internal meeting with President Joko Widodo (Jokowi) to discuss the sustainability of the HGBT policy at the Presidential Palace in Jakarta on Monday.

“We have decided to continue HGBT in the existing sectors, of which there are currently seven,” Hartarto said.

The seven industrial groups include the fertilizer, petrochemical, oleochemical, steel, ceramics, glass and rubber glove industries.

Referring to the proposal to extend HGBT to all industrial sectors, he said it was still under consideration.

During the meeting, the government also asked state-owned oil company PT Pertamina to design and create gas infrastructure, particularly for the regasification of liquefied natural gas (LNG), Hartarto added.

“Pertamina will receive permission and allocation for the creation of gas infrastructure, especially for LNG regasification. Meanwhile, other industrial areas can also create LNG regasification, as well as have the opportunity to obtain LNG from abroad,” the minister said.

Since 2020, the government has implemented an HGBT policy of USD 6 per MMBTU for seven industrial groups.

Pursuant to the Regulation of the Minister of Energy and Mineral Resources of the Republic of Indonesia No. 91.K/MG.01/MEM.M/2023 on Certain Natural Gas Users and Certain Natural Gas Prices in the Industrial Sector, the HGBT policy will end on December 31, 2024.

Meanwhile, Energy and Mineral Resources Minister (ESDM) Arifin Tasrif in May last year said the HGBT policy would continue.

In addition, Industry Minister Agus Gumiwang Kartasasmita stated that extending HGBT to all industrial sectors would not burden the state budget or reduce state revenues as the demand for industrial gas accounts for only 30 percent of the total national gas supply.

In this regard, his ministry has proposed extending the HGBT programme to all 24 sub-sectors of the manufacturing industry.

Kartasasmita said the HGBT programme had a triple impact on the industry: in terms of investment, exports and employment.

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