JAKARTA – Minister of Energy and Mineral Resources, Bahlil Lahadalia, revealed that the Certain Natural Gas Price (HGBT) policy will continue into 2025.

Seven industrial subsectors will still benefit from the discounted gas prices, including the fertilizer, petrochemical, oleochemical, steel, ceramic, glass, and rubber glove industries. These industries will be able to purchase gas at a price below the market rate, specifically at US$6 per MMBTU (million British thermal unit).

“As of now, it seems almost certain that these seven (industrial subsectors) will continue to benefit,” Lahadalia stated at the Secretariat of the Ministry of Energy and Mineral Resources, Thursday (16/1).

Bahlil explained that the policy aims to support the competitiveness of domestic industries through the subsidies provided.

“The philosophy of HGBT is to ensure that the added value process happens domestically. Thus, gas is used as a substitute raw material for imports to help industries remain competitive,” he said.

However, he acknowledged that the Ministry of Industry (Kemenperin) has proposed expanding the HGBT benefits to other subsectors.

Since the implementation of HGBT from 2021 to 2024, the program has generated IDR 67 trillion in state revenue, according to the Minister of Energy and Mineral Resources. Therefore, he emphasized the importance of targeting the allocation of HGBT correctly.

“We carefully calculate who should receive it. They must create jobs, use gas as a raw material, and convert it into VAT or income tax,” he said.

The continuation of this program is expected to sustain the growth of domestic industries while ensuring the state’s revenue remains optimal. (DK/ZH)