Weaken Competitiveness, The Sheet Glass Industry is Grimmer

INDUSTRY.co.id - Jakarta - Prospect of sheet glass industry in 2018 is predicted to remain grim. This is because the competitiveness of national sheet glass industry continues to weaken due to the high price of natural gas for the industry.

"This year, the condition of the sheet glass industry will still remain somewhat grim, with the still high gas prices reduced competitiveness," said Chairman of the Sheet and Safety Glass Association (AKLP) Yustinus Gunawan to INDUSTRY.co.id in Jakarta, Tuesday (16/1) / 2018).

He added that the ESDM Regulation No.58 Year 2017 on Natural Gas Sale Price through Pipes in Oil and Gas Downstream Business activities is unlikely to comply with Presidential Decree no. 40 years 2016.

"The EMR candy can not fulfill Presidential Regulation No.40 / 2016 which reaches US $ 6 per MMBtu," he explained.

Furthermore, Justin expects consistency from the government to implement Presidential Regulation no. 40/2016 which instructed the price of natural gas at US $ 6 per MMBtu.

According to him, sheet and safety glass industry to date is still waiting for the decline in gas prices in order to suppress the higher production costs.

"For the glass industry the price of gas determines efficiency because it accounts for 20 percent to 25 percent of total production costs," he said.

On the other hand, Yustinus remains convinced the President is consistent to pay off his promise in Presidential Decree No. 40 of 2016 related to the decline in gas prices for industry.