PGN is Ready to Prove Gas Management Conducted Transparent

INDUSTRY.co.id - Jakarta - PT PGN Tbk is ready to prove that its gas business management has been done transparently and accountably following the decision of the Panel of Judges of the Business Competition Supervisory Commission (KPPU) in the gas price monopoly case in Medan, North Sumatra.

"So far, the implementation of PGN business, especially in pricing has been referring to existing legislation," said PGN Corporate Secretary Rachmat Hutama in his statement in Jakarta, Wednesday (15/11/2017)

He mentioned the high gas price in the period of August-November 2015, due to additional gas coming from LNG (liquefied natural gas) plus the cost incurred in each business chain including "trader" without facility, besides gas supply from PT Pertamina EP.

On Tuesday (14/11), the Panel of Judges of KPPU decided PGN management was guilty of determining the selling price of natural gas in Medan.

In its decision, PGN is declared to have set the excessive price by not considering the purchasing power of domestic consumers when determining the gas price increase in the period of August-November 2015.

In addition, in a number of gases sale and purchase agreements (PJBG) signed between PGN and consumers there is an adverse raw clause.

Responding to this, Hutama said PGN management will take further steps to study the copy of the verdict.

According to the man who is often called Temmy, it is also the focus of PGN management on the verdict of the trial that in the aspect of governance has not been seen holistically, especially the downstream gas business scheme.

For PGN, BUMN with open status, he added, is ready transparently to prove the accountability of gas management in its business activities, especially PGN which has been carrying out pioneer function in downstream gas sector for more than 52 years.

"We believe that the pricing we are running is appropriate and meets the applicable legal aspects," explains Temmy. (Ant)