Gas price hike can't be prevented: Minister

Minister of Industry Fahmi Idris said on Thursday that state-owned gas distributor PT Perusahaan Gas Negara 's (PGN) policy to increase gas prices by 10 percent was acceptable, Bisnis Indonesia reported Friday.

"PGN' s plan to raise the gas prices is a decision, which we can't prevent because it would be in the interest of PGN and an internal matter," he said.

According to Fahmi, the Ministry of Industry can't intervene in the matter in any way and influence that state enterprise's decision, which is considered a right corporate move.

The Minister has asked industrial players to be more proactive in creating bargaining position with PGN instead of asking the government's help on this issue.

In an effort to bridge the differences on gas price hike, the minister has suggested that this problem can be solved through dialog on the basis of business to business between PGN and industrial players.

Last week, PGN planned to raise gas prices by 10 percent to $5.5 a million British thermal unit in the middle of this year.

The price gain is to help offset the loss caused by the delays in the pipeline projects, PGN?s president director Sutikno said on Jan 5. (*)