Industry Minister Receives Many Complaints Regarding Distribution of Certain Natural Gas Price Program

TEMPO.CO, Jakarta - Indonesia's Minister of Industry (Menperin) Agus Gumiwang Kartasasmita made a dig at PT Pertamina Gas Negara (PGN) regarding the implementation of the specific price (HGBT) program. Agus said that many HBGT recipients complained to him because they had to buy commercial gas prices after PGN raised gas prices and quota systems as of January 1, 2025.

"I have received many complaints from the industry regarding PGN's low commitment," said Agus when met at the office of the Ministry of Energy and Mineral Resources (ESDM) on Friday, January 17, 2025. In fact, Agus stated that gas is a main component that is also a raw material for production for industry players.

Agus supports the HGBT program to be reimplemented immediately since its validity period expires on December 31, 2024. HGBT is a cheap gas subsidy program provided by the government to seven industrial sectors including ceramics, fertilizers, petrochemicals, oleochemicals, steel, glass, and rubber gloves. HGBT recipients only need to pay a gas price of US$ 6 per MMBTU.

Agus explained that the determination of natural gas prices will help the industry get guarantees and availability of production materials. "Prices should not fluctuate, what has become a contract between the industry and PGN, the contract must be respected by commitment," said Agus delivering a special message.

Previously, the Minister of Energy and Mineral Resources Bahlil Lahadaila promised to re-implement HGBT to seven industries this year. Bahlil also said that currently there is a proposal to increase the number of industrial groups receiving HGBT, but the Ministry of Energy and Mineral Resources is still conducting a study.

The Ministry of Industry also wants the price of subsidized gas in HGBT to remain at US$ 6 per MMBTU. According to the Spokesperson for the Ministry of Industry Febri Hendri Antoni Arif, the increase in HGBT will have a negative impact on the Industrial Confidence Index (IKI) and the Manufacturing Purchasing Manager's Index (PMI).

Febri said that if the HGBT program does not continue, it is possible that the industrial sector will experience pressure and contraction. "But if gas prices go down, the industry will be enthusiastic and PMI could increase," said Febri who was met at the Ministry of Industry Building, Monday, January 13, 2025.

Dani Aswara contributed to the writing of this article.

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