The High Price of Industrial Gas Triggered the Cessation of Operations of Companies

INDUSTRY.co.id - Jakarta - The price of industrial gas in Indonesia which is on average at US $ 8-US $ 10 per Million Metric British Thermal Unit (MMbtu) is considered more expensive compared to ASEAN countries.

Chairman of the Forum of Industrial Gas Users Achmad Safiun said the high gas prices for industry triggered the suspension of operations of a number of companies.

There used to be 140 companies of latex gloves, now living six, Safiun said in a discussion held by Ikatan Sarjana Teknik Industri dan Manajemen Industri (ISTMI) in Jakarta, Wednesday (13/12/2017).

Meanwhile, General Chairman of ISTMI Faizal Safa said the industry sector has become the main motor of national economy with the contribution of National GDP of 17.98%. Among others, through three main industries namely food and beverage industry with an average contribution of 5.32% per year; the transportation equipment industry averages 1.96% per annum contribution as well as the industries of metal goods, computers, electronics, optics and electrical appliances with an average contribution of 1.90% per annum. These three branches of industry become the main driving force of the national industry sector.

The magnitude of this role signifies the strengthening of industrial structures toward higher value added production and higher production technology use, Faisal said.

Faisal further said that the industry needs to be seen thoroughly, both from the side of the premier industry, secondary and tertiary. And this certainly can be done with the role of government to help improve the country's industry.

The sustainable growth of the downstream energy industry indirectly contributes to the increased productivity and competitiveness of the national manufacturing industry, he said.

Head of Marketing PT Perusahaan Gas Negara (Persero) Tbk, Adi Munandir said PGN gas price is still competitive. Government support is required if industrial gas price adjustment is to be made.

Not only from business entities, there must be adjustments from the government. PGN purchases gas from upstream alone is more than US $ 6 per MMbtu. Currently, the Ministry of Energy and Mineral Resources is conducting efficiency or optimization of natural gas selling price by conducting gas governance, for example the plan to revise the 19th Regularly so as to reduce the sale of stratified, and then the gas selling price arrangement through the downstream gas selling price candy, Adi said.