Jakarta – The Ministry of Energy and Mineral Resources (MEMR) has extended the Specific Natural Gas Price (HGBT) policy for seven industrial sectors in Indonesia. This decision allows 253 industries to enjoy natural gas prices at special rates adjusted based on their utilisation.
Minister of Energy and Mineral Resources Bahlil Lahadalia said in a written statement on Monday, 3 March, that this policy was a directive from President Prabowo Subianto to improve the competitiveness of domestic industries and accelerate national economic growth.
“This special natural gas price is differentiated based on its use, namely USD 7 per MMBTU for fuel and USD 6.5 per MMBTU for raw materials,” Bahlil said.
The decision is contained in Minister of Energy and Mineral Resources Decree No. 76.K/MG.01/MEM.M/2025, a revision of the previous regulation. With this policy, industries that previously paid gas prices in USD 6.75 – 7.75 per MMBTU now get more competitive rates. This step is also in line with Presidential Regulation No. 121/2020, which aims to accelerate the growth of the natural gas-based manufacturing and industrial sectors.
Positive impact on industry and economy
Bahlil said that the HGBT’s sustainability will significantly benefit the national economy, including increasing the competitiveness of Indonesian industries in the global market, creating new jobs, and keeping product prices affordable for the community. “We hope this policy can strengthen the national industry to be more competitive and contribute more to economic growth,” he said.
Not only for industry, this policy also impacts the electricity sector. The government ensures the utilisation of natural gas as a more competitive energy source to maintain the stability of electricity tariffs for the public and reduce the burden of energy subsidies. This policy is further regulated in the Decree of the Minister of Energy and Mineral Resources No. 77.K/MG.01/MEM.M/2025, which regulates the price of natural gas to provide electricity for the public interest.
Several industries previously included in the list of HGBT beneficiaries are no longer listed in the latest regulation. This is due to several factors, such as gas prices at the plant gate that are already lower than the HGBT tariff limit and conditions where certain natural gas users are no longer operating or do not fulfil the beneficiary criteria.
Budget efficiency and investment strengthening
Since its implementation in 2020, the HGBT policy has significantly improved state budget efficiency. In the electricity sector, implementing HGBT has reduced the cost of electricity supply (BPP) by trillions of rupiah. The peak occurred in 2022, when the savings reached IDR 16.06 trillion. Electricity subsidies were also successfully reduced, with the highest savings reaching IDR 4.10 trillion in the same year, while electricity compensation was reduced by IDR 13.09 trillion.
In the industrial sector, the economic impact of HGBT is also huge. Data shows that from 2020 to 2023, this policy has generated economic benefits worth IDR 247.26 trillion. These include an increase in exports of IDR 127.84 trillion, additional tax revenue of IDR 23.30 trillion, and investment growth of up to IDR 91.17 trillion. This confirms that the HGBT policy has played a role in increasing investor confidence in the investment climate in Indonesia.
In addition, this policy helps the government’s budget efficiency by reducing fertiliser subsidies by IDR 4.94 trillion. Thus, HGBT impacts the natural gas-using industry and optimises state revenue and strengthens the national industrial sector.
The government emphasises that implementation of the HGBT policy will continue to be evaluated to ensure its effectiveness.
“We will continue to coordinate with various relevant agencies so that this policy remains optimal and provides broad benefits to the community and the national economy,” Bahlil concluded. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)
