RPerpres on Natural Gas Establishes Priority Recipients of HGBT

The Government is currently drafting a Regulation of the President (“RPerpres”) on Natural Gas Business Activities through Transmission and Distribution Networks. The draft regulation is intended to clarify and improve the governance of natural gas distribution and pricing arrangements for the industrial sector.

Sri Bimo Pratomo, Director of Upstream Chemical Industry at the Directorate General of Chemical, Pharmaceutical, and Textile Industries of the Ministry of Industry, stated that the RPerpres is currently undergoing the harmonization process and is targeted for completion in early 2027 so that it can be implemented promptly.

“The draft regulation is currently undergoing the harmonization process and is expected to be completed in early next year so that it can be implemented promptly,” he told Hukumonline.

According to Sri Bimo, the RPerpres will also govern the balance between natural gas supply and demand to ensure the availability of Certain Natural Gas Prices (Harga Gas Bumi Tertentu - “HGBT”) for the industrial sector. This will include determining which industries are to be prioritized as recipients of HGBT in the event of an imbalance between supply and demand.

“It is hoped that the issuance of this RPerpres will improve the governance of HGBT and make it more supportive of the industrial sector,” he said.