Parliament Calls on Government to Evaluate Special Gas Price Recipients for Better Targeting
The head of Commission XII of the Indonesian Parliament from the Golkar Party faction, Bambang Patijaya, has emphasised that the Special Gas Price policy (HGBT) requires evaluation to ensure it genuinely benefits the domestic economy. He noted that the gas supply for the HGBT scheme is limited, so its allocation must be properly targeted. Gas at special prices should be prioritised for sectors most in need and with the greatest impact on the national economy.
Commission XII of Parliament is pushing the Directorate General of Oil and Gas of the Ministry of Energy and Mineral Resources (ESDM) to conduct a comprehensive evaluation of all HGBT recipients.
“The assessment should examine the level of gas utilisation, its contribution to domestic industry, as well as economic impact, including the multiplier effects generated,” Bambang said in a statement received on Monday 2 March.
Based on Commission XII’s findings, some HGBT recipients export the majority of their production. In several cases, approximately 90% of these companies’ production is destined for export markets, meaning direct benefits for strengthening domestic industry and economy are limited.
“If HGBT recipients mostly produce for export and do not provide significant strengthening of domestic industry, then their allocation needs to be recalculated. Gas at special prices should be directed towards strengthening the national economy,” he stressed.
Bambang also emphasised that HGBT recipients include not only the industrial sector but also the power generation sector. For example, gas requirements for power plants in special economic zones or strategic industrial areas that support investment and manufacturing activities, such as in Batam.
“Given limited gas supply, strategic sectors such as special economic zones and industrial areas that are centres of investment should be prioritised, because adequate energy in these areas directly impacts economic activity and electricity supply stability,” he concluded.