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November 5, 2024 | 03:02 pm
TEMPO.CO, Jakarta - Industry Minister Agus Gumiwang Kartasasmita initiated a Draft Government Regulation (RPP) on Domestic Natural Gas. This regulation is expected to be approved soon as it is expected to bolster the manufacturing industry's gas supply.
“We are determined and consistent in advocating for the importance of the Certain Natural Gas Price (HGBT) program,” the Golkar Party politician stated in a written statement on Tuesday, November 5, 2024.
Agus Gumiwang emphasized that the Natural Gas RPP will not only regulate gas for energy needs, including electricity but will also be a game changer for the manufacturing sector's resurgence. The sector, a cornerstone of the national economy, has recently experienced a decline.
Through this policy, the Minister highlighted that the HGBT program will extend beyond the current seven sub-sectors, encompassing a broader spectrum of the manufacturing industry. The seven sub-sectors include fertilizer, petrochemicals, steel, ceramics, glass, oleochemicals, and rubber gloves.
“The Ministry of Industry is committed to supporting the entire manufacturing sector, ensuring no one is left behind,” he asserted.
Indonesia's October 2024 Purchasing Manager's Index (PMI) for the manufacturing sector recorded a contractionary 49.2, marking a four-month decline. The HGBT policy, which has been in effect since 2020, offers a preferential gas price of 6 US dollars per MMBTU to seven specific industries: fertilizers, petrochemicals, oleochemicals, steel, ceramics, glass, and rubber gloves.
According to the Minister of Energy and Mineral Resources Decree No. 91.K/MG.01/MEM.M/2023, the current HGBT program is scheduled to conclude on December 31, 2024.
Prior to this, Agus Gumiwang has advocated for expanding the HGBT program to all 24 sub-sectors of the manufacturing industry. He emphasized that this expansion would not impose a burden on the state budget or reduce state revenue, as the industrial gas demand constitutes only 30% of the total national gas supply.
According to him, the HGBT program, since its inception in 2020, has delivered a threefold benefit to the industry, stimulating investment, boosting exports, and creating jobs.
Oyuk Ivani Siagian and Daniel A. Fajri contributed to the writing of this article.
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