Indonesia Extends Cheap Gas Program Amid Finalization of Regulations
JAKARTA, investortrust.id – The Indonesian government will extend the cheap gas program, officially known as HGBT, which had previously ended on December 31, 2024. This decision follows a limited meeting chaired by President Prabowo Subianto at the Presidential Palace in Jakarta on Tuesday, January 21, 2025.
The announcement was made by Coordinating Minister for Economic Affairs Airlangga Hartarto, who noted that the full details, including the sectors to benefit, will be announced separately.
"The HGBT will be extended, but the announcement will be made separately," Airlangga said.
Regulations Under Review
Airlangga explained that the government is finalizing regulations related to the industrial gas subsidy program, and a subsequent meeting will address gas pricing in greater detail.
"A limited meeting on gas prices will be discussed separately; we are still refining the regulations," he added.
Industry Support for HGBT
Minister of Industry Agus Gumiwang Kartasasmita confirmed that ministers involved in the discussion had reached an agreement to continue the program. However, specific details are not yet being disclosed.
"We have agreed on several aspects of the HGBT, but we agreed not to share the details with the media right now," Agus said.
Despite withholding specifics, Agus assured stakeholders that the continuation of the HGBT program would deliver positive outcomes.
"The decision has been made, and God willing, it will be a positive outcome," he concluded.
Sectors to Benefit
Earlier, Minister of Energy and Mineral Resources Bahlil Lahadalia confirmed that seven industrial subsectors will continue to receive benefits under the HGBT in 2025. These include: fertilizer, petrochemicals, o, oleochemicals, steel, ceramics, glass, and rubber gloves.
These industries had previously enjoyed gas prices below market rates, capped at $6 per MMBTU, allowing them to remain competitive.
The continuation of the HGBT program highlights the government's commitment to supporting strategic industries and maintaining Indonesia's industrial competitiveness.