Aceh-based firms may stop operation due to gas shortage

Three large companies in Aceh may have to stop their operations in the near future if they still cannot get natural gas from ExxonMobil Indonesia Inc (EMOI) which also operates in that province.

They are paper maker PT Kertas Kraft Aceh (KKA), PT Asean Aceh Fertilizer (AAF) and PT Humpuss Aromatic Group.

The companies, which had used gas from ExxonMobil over the years, had halted the operation of their plants after the American company suspended its activities because of security reasons.

Previously, the government had promised to continue supplying gas to the three companies and others operating in Aceh if EMOI had reactivated all of its plants in the province. They include fertilizer maker PT Pupuk Iskandar Muda.

EMOI?s gas fields had resumed operations, but the government has decided to export that commodity. ?The central government?s stance towards the continuation of the three companies? operation remains unclear. So far, the government and EMOI have not shown their commitment to them,? said the chairman of the Aceh provincial legislative council, Syaifuddin Ilyas.

Ilyas said most Acehnese were disappointed with the government?s unclear stance and that many downstream businesses in the area could stop their activities due to a lack of gas.

Presently, PT Pupuk Iskandar Muda received only 55 MMSCFD of gas from Exxon Mobil, down from the 62 MMSCFD in the past. The fertilizer turned out by the company has mostly gone to farmers in Aceh and many other parts of Indonesia. (*)