Govt to remove the subsidy given to AAF fertilizer plant
Saturday, September 4 2004 - 03:16 AM WIB
The government will soon remove the subsidy given to Aceh-based fertilizer producer PT Asean Aceh Fertilizer (AAF) which at present buys its gas at a subsidized prices, Bisnis Indonesia reported on Saturday.
"The gas supply contract to AAF has expired, and the government could no longer provide subsidy for the future sale of gas to the company," Foreign Minister Hassan Wirajuda told reporters following a meeting with President Megawati Soekarnoputri.
Hassan said that the decision to remove the subsidy was made during a Cabinet meeting recently. "We will explain other ASEAN member countries, as the shareholders of the fertilizer plant, the price of the gas to be sold to the company will be based on a market mechanism," he said.
PT AAF is owned by Indonesia (60 percent) through PT Pusri, Malaysia (13 percent), the Philippines (13 percent), Singapore (1 percent) and Thailand (13 percent). (*)