Bahlil: 7 Industrial Subsectors to Continue Receiving HGBT Benefits, More Could Be Added
Jakarta, investortrust.id — Minister of Energy and Mineral Resources Bahlil Lahadalia divulged that seven industrial subsectors will continue to benefit from the government's subsidized gas program, which is set to continue in 2025.
Under the so called Specific Natural Gas Price (HGBT) program, seven industrial subsectors can procure natural gas at below market price of US$ 6 per MMBTU last year. The subsectors include fertilizers, petrochemicals, oleochemicals, steel, ceramics, glass, and rubber gloves.
"Now, if from the seven [industrial subsectors] it seems almost certain to be continued," Bahlil said when met at the Secretariat of the Ministry of Energy and Mineral Resources on Thursday, January 16, 2025.
He revealed that his team had held a meeting on Wednesday, January 15, 2025, to discuss the continuation of the HGBT program. The HGBT program aims to make the industrial sector competitive with the help of the subsidies provided.
"The philosophy of HGBT is how the value-added process is in the country. So gas is used as an import substitution raw material. So that the industry can be competitive, the HGBT is given," Bahlil said.
Nevertheless, Bahlil acknowledged that there is a proposal from the Ministry of Industry to expand the industrial subsectors that receive HGBT benefits. This is currently being studied by the government.
Bahlil explained that the implementation of the HGBT program during the 2021-2024 period resulted in a converted state revenue of Rp 67 trillion. Therefore, he emphasized the importance of careful distribution of HGBT benefits.
"So don't let all the gas we give to the HGBT, the state doesn't get revenue. So we calculate correctly. Who should we give, but he must be an industry that creates jobs, then the gas becomes raw material, then he must convert to VAT or PPH. This is what we are calculating," he explained.