Lower Industrial Gas Prices at Risk Under New Administration

The group of industries benefiting from certain natural gas prices (HGBT) policy, namely the fertilizer, petrochemical, oleochemical, steel, ceramics, glass, and rubber glove sectors, hopes for the policy to stay.

Afiffah Rahmah Nurdifa & Stepanus I Nyoman A. Wahyudi

21 Feb 2024 - 18.11
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Lower Industrial Gas Prices at Risk Under New Administration

Illustration - A worker was supervising the ceramic production process in a factory. The ceramic industry is one of the sectors that requires an adequate gas supply for the smooth production process./Bisnis.

Bisnis, JAKARTA — The continuity of certain natural gas prices (HGBT) policy under the new government by 2025 has raised concerns in the manufacturing industry, which has benefited from the policy.

Although the absorption of specially allocated gas priced at $6 per million British thermal units (MMBtu) is not yet optimal, it has provided a tailwind for the national manufacturing sector and helped increase production utilities.

Those who benefit from the policy, namely the fertilizer, petrochemical, oleochemical, steel, ceramics, glass, and rubber glove sectors, expect the policy to remain under the new administration.

However, the Ministry of Energy and Mineral Resources (ESDM) has not been able to confirm that the policy will continue past 2024. Moreover, according to the Director General of Oil and Gas Tutuka Ariadji, the ministry also needs to conduct further evaluations regarding the proposal to expand the HGBT program to all industry sectors. Tutuka also asks the Ministry of Industry to participate in the evaluation.

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© Copyright 2024, Hak Cipta Dilindungi Undang - Undang.