ESDM Ministry Still Finds the Best Option to Lower Industrial Gas Price
By : Hariyanto And Aldo Bella Putra | Thursday, January 25 2018 - 17:00 IWST

Wakil Menteri dan Sumber Daya Mineral (ESDM) Arcandra Tahar
INDUSTRY.co.id - Jakarta - The government continues to seek the best option to reduce the price of the industrial gas economy to US $ 6 per MMBTU in accordance with the mandate of Presidential Regulation No. 40/2016.
One of them is through the reduction of State Revenues allocation from natural gas so that gas industry can get competitive gas price and grow optimally.
Nevertheless, Vice Minister and Mineral Resources (EMR) Arcandra Tahar said the plan is still being discussed and awaiting decisions under the Minister of Finance.
"The Minister of Finance said that this effect will be eliminated, because the state revenue will decrease as well, we will wait from the Minister of Finance," explained Arcandra in Jakarta, Tuesday (23/1/2018) night.
This consideration considering the impact of the abolition of Non-Tax State Revenue (PNBP) from natural gas has no significant effect on industrial gas price decline in accordance with Perpres 40/2016.
"It could be less US $ 0.7, some US $ 0.3, very small effect, and not under USD 6," said Arcandra.
Even if this is done, then the potential revenue of the country could be reduced to US $ 4.3 million. "We have calculated, the amount of PNBP loss of about US $ 4.3 million," said Arcandra.
To date, 56 of the 80 companies recommended by the Ministry of Industry are being calculated for the abolition of non-tax revenues. The total gas requirement of the 80 companies is 21 MMSCFD which the company is out of the three types of companies that have already experienced price declines, namely steel, fertilizer and petrochemical.
"For three (types) the industry is finished, four types of industries are small," said Arcandra.
The four types of industries referred to by Arcandra are ceramics, glass, gloves, and oleo chemicals.
Even so, the elimination of PNBP is still the best choice while still evaluating rather than having to cut prices in upstream oil and gas. Moreover, world oil prices continue to climb to another consideration.
"If ICP is only 11% ICP is now US $ 60, 11% is US $ 6.6, its LNG only, so how much more can be deducted? Deducted the upstream? Contract it's finished upstream," said Arcandra.
Read Also
The 7th Abu Dhabi Dialogue in Dubai: Commitment to Enhance Migrant…
Pertamina Hulu Rokan expounds on wetland innovations at COP28
Pertamina reaffirms its commitment to net zero emissions by 2060
President Jokowi Inaugurates Tangguh Train 3 Project in Teluk Bintuni…
MMA Offshore Automates Onboarding With Boomi
Today's Industry

Senin, 09 Juni 2025 - 14:22 WIB
Savyavasa and Permata Bank Launch Exclusive Foreign Mortgage Program
Savyavasa, a luxury residential development by Swire Properties and JSI Group under PT Jantra Swarna Dipta, in collaboration with Permata Bank, presents a new solution for foreign nationals…

Rabu, 21 Mei 2025 - 10:09 WIB
Indonesia, Thailand Sign MoU on Health Sector, Focusing on Global Capacity, Collaboration
As a part of President Prabowo Subianto’s official visit to Thailand, both countries signed a Memorandum of Understanding (MoU) on health sector, in an effort to strengthen bilateral cooperation…

Rabu, 21 Mei 2025 - 10:06 WIB
Indonesia, Thailand Deepen Cooperation on Security, Trade, and Regional Stability
resident Prabowo Subianto has reaffirmed Indonesia’s strong commitment to deepening bilateral relations with Thailand during the meeting with Thailand’s Prime Minister Paetongtarn Shinawatra…

Selasa, 20 Mei 2025 - 12:44 WIB
Boediman Widjaja's Technology Ready to be Adopted in Jababeka Industrial Estate (KIJA)
In an exclusive seminar entitled "A Great Step: Boediman Widjaja Story - Going from Indonesia, Thriving in Singapore" held at the President Lounge, Menara Batavia, Boediman Widjaja, Founder…

Jumat, 02 Mei 2025 - 10:46 WIB
Binawan and Government Support Indonesian Nurses in Europe through Scholarships
In the midst of the viral #KaburAjaDulu hashtag as a symbol of the young generation's disappointment with domestic working conditions, Binawan responded with real action: dispatching Indonesian…
News Comment