By Romel S. Gurky
The Ministry of Industry has launched a crisis center to handle complaints from manufacturers affected by recent cuts in natural gas supply under the country’s special gas pricing scheme (or better known as HGBT, a senior official said on Monday.
The move comes after industrial players reported gas supply reductions of up to 48% despite steady upstream production. The supply disruptions have hit sectors that benefit from the government’s Harga Gas Bumi Tertentu (HGBT) policy, which caps gas prices at $6.5 per MMBtu.
“We find it concerning that supply to industrial users under the HGBT scheme is being limited, while gas for market-price buyers, which can exceed $15 per MMBtu, remains unaffected,” ministry spokesperson Febri Hendri Antoni Arief said in a statement.
The crisis center, dubbed the Crisis Center for HGBT-Recipient Industries, will collect and verify complaints, serve as a communications channel with industry, and guide policy responses. The center will also coordinate with industry associations to gather field data and assess operational impacts.
Febri said the Ministry suspects the supply limitations may be driven by efforts to raise prices beyond the government-mandated level.
Read also: Industry Ministry raises concerns over disruptions in special gas price policy
“There are no technical issues in gas production. We must not repeat past policy mistakes that led to factory closures and job losses in sectors such as textiles and footwear,” he said.
The Ministry said reports have emerged of manufacturers being forced to shut down production lines or switch to diesel fuel, increasing operating costs. Some have halted production entirely and may begin laying off workers.
The HGBT scheme, launched in 2020 under a presidential regulation, was designed to boost the competitiveness of domestic industries. Seven subsectors — including fertilizers, petrochemicals, oleochemicals, steel, ceramics, glass, and rubber gloves — are eligible for the subsidized price.
The Ministry has previously warned of an imbalance in gas distribution, noting that over half of the gas allocated under HGBT is currently directed toward state-owned enterprises, while private manufacturers face shortages.
“Gas is a critical input. If supplies are cut or pressure drops, the impact on productivity and employment is immediate,” Febri said.
Total industrial gas demand is estimated at 2,700 million standard cubic feet per day (MMSCFD), but only around 1,600 MMSCFD is being met under the HGBT scheme.
The Ministry is urging coordination with the energy ministry and other stakeholders to ensure consistent application of the gas pricing policy.
“We call on all affected industries to report disruptions. The government is committed to protecting investment and ensuring energy security for manufacturers,” Febri said.
Editing by Reiner Simanjuntak
