Fertilizer makers ask to raise price

The government can increase natural gas prices for fertilizer makers, but it should accordingly allow them to raise the price of fertilizer, the chairman of Indonesian Fertilizer Producers Association said Monday as reported by Bisnis Indonesia daily.

?The government may increase gas price. But, as a consequence, it should also allow us to sell fertilizers at market price,? said Zainal Soedjais.

Coordinating Minister for the Economy Dorodjatun Kuntjoro-Jakti said in a parliamentary hearing recently that the government was considering to increase the price of gas supplies to fertilize producers. Dorodjatun said gas prices for fertilizer makers were the lowest among the tariffs set for consumers in the country.

Gas producers accordingly preferred selling their products to other industries and exporting them, the minister said.

Dorodjatun did not to say how much the gas prices would be raised.

At present, fertilizer makers buy gas at US$1-1.8 per MMBTU.

The government lowered gas prices for fertilizer producers so that farmers can buy fertilizers at cheap prices. The policy has discouraged gas producers from selling their gas to fertilizer producers. (*)