Five Sectors of Industry Becomes The Priority Of The Ministry Of Industry That Can Decrease Gas Prices

By : Ridwan And Aldo Bella Putra | Tuesday, October 17 2017 - 20:00 IWST

Direktur Industri Kimia Hulu, Muhammad Khayam (Foto Humas)

INDUSTRY.co.id - Jakarta - The Ministry of Industry (Kemenperin) continues to encourage business actors to get the industrial gas price reduction immediately.

In this case, the Ministry of Industry has proposed to the Ministry of Energy and Mineral Resources (ESDM) to reduce gas tariffs on five industrial sectors that are considered very urgent.

Kemenperin noted five sectors of the industry, namely petrochemicals, fertilizers, steel, glass, and ceramics. These five manufacturers are assessed in a crucial state so it is necessary to get a decrease in gas prices to support the sustainability of production.

"The first five sectors are more urgent, and then two other sectors (oleochemicals and rubber gloves) follow," said Muhammad Khayam Chemical Upstream Industries Director in Jakarta, Tuesday (17/10/2017).

According to him, the decline in the five sectors must be realized because the gas contribution in the cost of production of each industry is more than 25 percent, some even reach 70 percent.

"Therefore, the government, especially ESDM should immediately issue a policy on the reduction of gas prices," he explained.

Khayam hopes that the appropriate gas tariff for the five priority sectors is not more than US $ 6 per MMMBtu, in accordance with Presidential Regulation (Perpres) No. 40 of 2016 on the Determination of Natural Gas Price.

However, he thinks if this gas reduction cannot be done directly in the near future it can be reduced gradually.

"At least there is a decrease in advance even if only US $ 1 per MMBtu, later can use the scheme gradually and can dievalusi back," he added.

Previously, in Presidential Decree Number 40 of 2016, one of them mentioned, the government will give the gas tariff reduction for the seven industrial sectors, namely petrochemical, fertilizer, steel, glass, ceramics, oleochemistry, and rubber gloves. However, the decline in gas tariff has not been realized until now, even the gas tariff is still above the average of US $ 9 per MMBtu.

"Currently we are still waiting for the calculations from ESDM, if it is aligned between upstream and downstream gas then it can be decided," he said.