Evaluation of Subsidised Gas Recipients Needed to Ensure Proper Targeting and Impact
Jakarta — The Chairman of Commission XII of the House of Representatives from the Golkar Party faction, Bambang Patijaya, has emphasised that the Subsidised Domestic Gas (HGBT) policy requires evaluation to ensure it genuinely benefits the domestic economy.
According to him, gas supplies for the HGBT scheme are limited, so allocation must be properly targeted. Gas at special prices must be prioritised for sectors with the greatest need and the largest impact on the national economy.
Commission XII of the House of Representatives is urging the Directorate General of Oil and Gas of the Energy and Mineral Resources Ministry to conduct a comprehensive evaluation of all HGBT recipients. The assessment should examine the level of gas utilisation, its contribution to domestic industry, and its economic impact, including multiplier effects.
Based on findings by Commission XII, some HGBT recipients have the majority of their output exported. In several cases, approximately 90 per cent of a company’s production is directed to export markets, meaning the direct benefit for strengthening domestic industry and economy becomes limited.
“If companies receiving HGBT have the majority of their output for export and do not provide significant strengthening to domestic industry, then its allocation needs to be recalculated. Gas at special prices must be directed towards strengthening the national economy,” he stated in an official statement on Monday (2 March 2026).
Because gas supply for HGBT is limited, priority must be given to sectors supporting economic growth, such as sufficiency for industrial sectors and power generation on Batam Island. Under conditions of limited supply, strategic sectors such as these must receive attention to maintain business operations and the electrical system.
Therefore, Commission XII is urging recalculation of HGBT quotas on a data-driven and performance-based basis, so that gas allocation is more properly targeted, equitable, and genuinely supports domestic economic interests.