INGTA Urges Government to Revoke Decision of Gas Sale Price More Fair

INDUSTRY.co.id - Jakarta - Chairman of the Indonesian Natural Gas Trader Association (INGTA) or the Association of Natural Gas Distributors of Indonesia, Sabrun Jamil hopes that the Central Government through the Ministry of Energy and Mineral Resources can immediately take or issue a "Clear" and fair decision and policy in determining the price selling gas in the country.

Fairer decisions is taken by the central government in addition to increasingly moving the economic sector in the country which in the past few months experienced lethargy will also make the gas industry more challenged in making business development planning in the future.

"Over the past few months there has been a change of attitude from the government. Ministry of Energy and Mineral Resources (ESDM) under the leadership of Ignatius Jonan and Deputy Minister Archandra Tahar are in our judgment more wisely. This is shown by his attitude that would listen more to the aspirations of all parties. Before making a decision on the domestic gas sale price, they invite all parties to a joint dialogue. In addition to dialogue with the domestic gas users industry. Also dialogue with gas producers and distributors or gas traders in INGTA, "said Chairman of INGTA Sabrun Jamil to media crew on the sidelines of a monthly discussion on Thursday (26/10/2017) at INGTA secretariat, Kuningan Jakarta South. The discussion was guided by Eman Sulaeman Nasim University Communication Lecturer (UI).

Further Sabrun Jamil hoped that the results of the dialogue that has been done by the Ministry of Energy and Mineral Resources with various parties related to gas, can be poured in the form of Minister or Permen Regulation which is more fair and binding about gas selling price. So that not only benefits one party but also all parties who participate in the industry in the homeland. Not only to benefit gas consumers, in this case the gas industry users, but also gas producers and traders who have invested substantial capital for the smooth supply or distribution of gas from gas producers to the gas industry users.

"Therefore, in determining the selling price of gas later, we expect the government to pay attention to the value of investment and working capital that has been issued among suppliers or gas traders. Starting from the value of IRR or internal rate of return or return on working capital interest and infrastructure costs and other operational costs that have been invested by entrepreneurs engaged in gas suppliers industry. So that the gas distribution to the industry smoothly and did not meet the constraints while the gas supply from the gas producers smoothly," said Sabrun.

According to Sabrun Jamil, INGTA expects the Ministry of EMR to set a profit margin for trading of at least 7 (seven)% and a margin for IRR of at least 11%. In figures, the common ground or agreement of all parties. In that figure also the traders and suppliers of gas can be a little breathing.

"We hope that the policies adopted based on the results of a long dialogue with various parties undertaken or coordinated by the Ministry of Energy and Mineral Resources can be immediately set forth in the form of Candy. This is so that the business of gas and industry in the country can immediately make the business plan back both for the year 2018 and later years to come," said the engineer graduated from the Faculty of Engineering, University of Indonesia.

 On that occasion Sabrun Jamil who is also believed to be chairman of SOLUSI UI dismissed the discordant voice of the industrial users of gas as end user gas. Among the industrial users of gas are often preoccupied that the gas suppliers often set the price of gas to the industry too high. Whereas the selling price of gas during this "open book", reported to the government through BPH MIGAS. So there is no excessive margin ..., if any, there is a special request (quality) from consumers.

"Gas suppliers or suppliers cannot determine their own prices. The price is determined by the government. We ourselves from INGTA want the government to fix the gas price, not only to make the gas industry (gas consumers) happy, but also to pay attention to the interests of the companies that have invested in gas upstream gas infrastructure. Hence what EMR Minister Ignatius Jonan did, inviting all parties to dialogue, sitting together to determine the right price, was very positive. All can understand the constraints of the other party. So the selling price of gas which will be determined by the Government can be felt fair by all parties," said Sabrun Jamil.