Indonesian Political, Business & Finance News

Evaluation of Special Gas Price Recipients Intensifies as Industry Faces Gas Shortage

| | Source: KOMPAS Translated from Indonesian | Energy

JAKARTA – Discussion of reviewing recipients of special gas prices (HGBT) is intensifying amid industry complaints about limited supplies of cheap gas at the beginning of 2026. Commission XII of the House of Representatives views the policy as needing restructuring to be better targeted and deliver tangible benefits for the national economy.

Bambang Patijaya, head of Commission XII from the Golkar Party faction, emphasised that gas allocation at special prices must genuinely strengthen domestic industry rather than merely serve as an incentive without clear multiplier effects.

“If companies receiving HGBT primarily produce for export and do not significantly strengthen domestic industry, then the allocation needs to be recalculated,” Bambang stated through a press release on Monday (2 March 2026).

Gas at special prices, he continued, should be directed towards strengthening the national economy.

The assessment encompasses gas utilisation rates, contribution to domestic industry, and economic impact, including multiplier effects generated.

Based on Commission XII’s findings, some HGBT recipient companies direct approximately 90 per cent of their production to export markets. This situation is seen as limiting direct benefits for strengthening domestic industry.

Bambang also emphasised that HGBT recipients include not only the manufacturing sector but also the power generation sector in special economic zones and strategic industrial zones, such as in Batam.

“In conditions of limited gas supply, strategic sectors such as special economic zones and industrial zones that are investment centres must be prioritised,” he stated.

Energy sufficiency in these regions, he said, directly impacts economic activity and power supply stability.

Consequently, Commission XII is pushing for recalculation of HGBT quotas based on data and performance so gas allocation is fairer and genuinely supports domestic economic interests.

The shortage is occurring despite HGBT allocation being clearly regulated in the Energy and Mineral Resources Ministry Regulation Number 76.K/2025. However, field implementation consistently falls below official allocation figures.

Low HGBT quotas risk depressing factory utilisation, raising production costs, and eroding national industry competitiveness.

“This situation makes production planning chaotic. Industry needs medium and long-term energy certainty, not sudden decisions,” explained an industry representative.

Uncertainty also shadows February supply, particularly in East Java, as HGBT allocation has not been announced.

“If February truly has no quota, industry hopes the emergency conditions of January do not repeat. However, this lack of clarity alone is sufficient to create anxiety,” the representative stated.

Without energy certainty, industry finds it difficult to grow and the 8 per cent economic growth target will be hindered.

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