Gas price reduction awaits presidential regulation
Tuesday, January 26 2016 - 01:33 AM WIB
The Ministry of Energy and Mineral Resources has yet to implement the planned reduction in the price of gas for industries as President Joko Widodo has not yet signed the required presidential regulation.
Director General of Oil and Gas IGW Wiratmadja Puja said on Monday once the presidential regulation, drafted by the ministry, has been signed by the president, it would be immediately followed with the issuance of a ministerial regulation.
The ministry has proposed a reduction in the price of gas for industries as part of the recently announced government economic package to help local manufacturing industries.
The price reduction was initially targeted to start January 1. Under the plan, gas purchase contract with a price of US$8 per mmbtu, has been proposed to be reduced by $1 per mmbtu, while contract with price of more than $8 per mmbtu can enjoy a reduction of up to $2 per mmbtu.
Meanwhile, Minister of Energy and Mineral Resources Sudirman Said stated that the ministry is in the process of identifying the industry customers that would be entitled to the gas price reduction.
He said that in the first stage, companies slated to be entitled to the proposed price gas reduction includes PT Pelangi Losarang (Chang Jui Fang), PT Indo Raya Kimia, PT Krakatau Steel, PT Tossa Shakti, PT Pupuk Kujang, PT Petrokimia Gresik, PT Pusri, PT PIM. In the second stage, the companies include PGN, Pertamina (Niaga), EHK, Sadikun, Rabbana.
He added that the ministry is still waiting for proposed names to be included in the third stage of gas price reduction. The ministry hopes to receive the proposed names in February.
Editing by Reiner Simanjuntak