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Businesses raise concerns over delayed affordable industrial gas extension
Without the cap, seven industries would need to pay for gas at a much higher market rate.
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Engineers work on oil and gas infrastructure to strengthen national energy security. (ANTARA/R.Rekotomo)
T
he Indonesian Industrial Estate Association (HKI) is urging the government to extend the fixed natural gas price (HGBT) subsidy program after the policy officially ended at the end of last year.
Previously, the program provided affordable natural gas for steel, ceramic, glass, petrochemical, fertilizer, oleochemical and rubber glove manufacturers with the price capped at US$6 per million British thermal units (MMBtu). So far, no decision has been made to extend the policy to 2025.
HKI chairman Sanny Iskandar said he was concerned that delaying the extension of the policy would dampen national industries’ competitiveness considering its crucial role for energy-intensive industries.
Extending the program to 2025 will provide clarity and certainty for businesses in creating their investment plans, he said.
“HKI will continue fighting for the HGBT extension with a more supportive scheme for industries. If gas prices are too expensive and fluctuate, many investors may opt for other countries offering a more competitive rate,” Sanny said on Monday, as reported by Bisnis.
Read also: Ceramic makers protest cut in subsidized gas quota
Without the cap, seven industries would need to pay for gas at a much higher market rate.
