Government to Consolidate HGBT and Gas Transmission Regulations

The Government plans to integrate the regulations on Specific Natural Gas Prices (Harga Gas Bumi Tertentu – “HGBT”) and natural gas transmission networks into a single Presidential Regulation (“Perpres”). Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Laode Sulaeman, stated that the draft regulation is nearing completion and is currently undergoing the harmonization process at the Ministry of Law.

“This is intended to address the ongoing developments. We want to consolidate all gas-related provisions into a single regulation, bringing together HGBT and transmission networks to establish a more comprehensive framework,” Laode told Hukumonline. 

The draft Perpres will subsequently revoke Presidential Regulation No. 40 of 2016 on the Determination of Natural Gas Prices and Presidential Regulation No. 6 of 2019 on Household Gas Networks for Small-Scale Customers.

With respect to HGBT, the new regulation will govern price limits and eligibility requirements, the scope and mechanism for adding industrial sectors, recipient criteria, fiscal adjustments, the protection of upstream economic viability, and inter-agency supervision and evaluation.

Meanwhile, provisions on transmission networks and natural gas business activities will cover integrated planning based on a master plan, tender mechanisms and special assignments, as well as the role of the Oil and Gas Public Service Agency in operating and managing government-funded infrastructure. The draft regulation will also address the shared use of facilities and incentives to support licensing and land provision.