Pertamina Gas Business, The End of Concern

By : Ridwan And Aldo Bella Putra | Wednesday, February 14 2018 - 18:00 IWST

Achmad Widjaja, Wakil Ketua Komite Tetap Kamar Dagang dan Industri (KADIN) Indonesia Bidang Industri Hulu dan Petrokimia
Achmad Widjaja, Wakil Ketua Komite Tetap Kamar Dagang dan Industri (KADIN) Indonesia Bidang Industri Hulu dan Petrokimia

INDUSTRY.co.id - Jakarta, Chamber of Commerce and Industry (Kadin) Indonesia considers the removal of the Directorate of Gas at Pertamina which is merged into Perusahaan Gas Negara (PGN) becomes a threat to the development of LNG gas in the future.

"The removal of the Directorate of Gas in Pertamina is a threat for future LNG gas, gas and LNG developments are increasingly concerned," said Acmad Widjaja as Deputy Standing Committee of Kadin for Upstream and Petrochemical Industries to INDUSTRY.co.id in Jakarta, Wednesday (14/2 / 2018).

According to him, the abolition of the Director of Gas from the composition of the Pertamina Board of Directors and his business was transferred gradually to PGN in order to help the dying PGN in the stock market and need a blood transfusion from Pertamina.

Furthermore, the man who is often called AW said; the gas problem is very controversial and increasingly apprehensive.

"Pertamina that has upstream to downstream instead creates a supply that does not bring changes to the improvement where the industry has suffered in terms of fixed prices that have not materialized in PP No.40 / 2016, then again the elimination of gas in Pertamina company that we consider can be trusted, even backwards," said AW.

According to him, with this condition, the industry that is a contributor to future economic growth will be disrupted, where PGN condition again less healthy.

"Customers are asked by PGN to sign a new PPJG starting April 2018. While the price certainty does not yet exist," he said.

AW continued, the removal of the Directorate of Gas by Pertamina became a worrisome gas ending. If it is traced back from its history, in 2001/2002, the PMS Gas Service was upgraded to LNG VP, in 2005/2006, the LNG VP was upgraded to Head of Bidus LNG, in 2010/2011, BidusLNG upgraded to SVO Gas & Power, April 18, 2012, SVP Gas & Power was upgraded to Directorate of Gas, then on February 13, 2018, the Gas Directorate was abolished and the business was gradually transferred to PGN.

"The above history will be a threat to the industry receives a definite support." The strategy that has not yet arrived from natural gas to LNG has not been realized with certainty, it has been erased and merged into one, while the oil and gas holding is still on the horizon," said AW.

Furthermore, he said, the above sequence in historical notes 'GAS' until there is a merger pressure that has not materialized in PGN will bring the impact of uncertainty in the future.

According to him, with the strong global world calling to the concept of go-green and reduce emissions will be lost in the middle of the journey. Later that existing industrial diesel imports will continue to enter and become a mere burden.

"When will we be able to step forward in-consistency of government in the policy of state-owned company itself always happens," added AW.

He continued, under these conditions, what will happen in the future is the cost of the industry rising as a result of the competitiveness that the president always asks to be competitive against the export market will never materialize.

In addition, Pertamina's future business challenges will be increasingly complex, where national energy needs are increasing not accompanied by the intention of availability and intention to build infrastructure.

"From year to year, Pertamina can only mutually leadership, while Pertamina itself does not focus on execution of in-line policy with the central government," said AW.

As is known, in the General Meeting of Shareholders (AGM) PT Pertamina (Persero) decided the reshuffle of the organizational structure of the company. The position of Director of Gas was removed, and there were two new directors.

With the elimination of the position of Director of Gas Pertamina, then Yenni Andayani automatically dismissed from the position of Director at Pertamina.

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