Gas Prices Made per Zone

Acting (Acting) Minister of Energy and Mineral Resources Luhut Binsar Pandjaitan said the determination of industrial gas can not only be determined the same. He said it turns out that industrial gas in each region has a price difference.

Luhut Binsar Pandjaitan

Luhut said that until now the government was still exploring the pricing of this industrial gas. The Ministry of Energy and Mineral Resources is conducting a deepening calculation related to industrial gas prices.

Luhut gave an example, the price of industrial gas in the western regions of Indonesia with eastern Indonesia is indeed different. This difference is due to the gas mouth in the east also supply the gas needs in the west.

Luhut said it made distribution costs more expensive. As a result, the price of industrial gas in the Aceh region, for example, is far more expensive than in the Papua Region.

"The price of the gas we made is zoning. So in eastern Indonesia, we provide gas for eastern Indonesia. Gas in central Indonesia, we focus on central Indonesia. In order to reduce transportation costs. The one in western Indonesia for in western Indonesia. If we bring it from the east, the cost is too much ".

Luhut said, to anticipate the prices that differ greatly in each region, the government is studying the discourse of gas imports from the nearest country which is indeed still lacking gas supply. Luhut said, when in Aceh indeed needed industrial gas but gas reserves in western Indonesia did not meet, the government opened up opportunities for imports from Brunei Darussalam or Malaysia which were located closer.

When importing from the nearest country, Luhut saw that the costs incurred by the government would be far cheaper than having to distribute gas from Papua to Medan. Luhut gave an example of cities in western Indonesia such as Aceh which, for example, had to take LNG from Papua.

"We must claim that. Why don't we just import it from somewhere? Malaysia or Brunei Darussalam is cheaper for example 3-4 US dollars per MMBtu. It was rationalized there, after that it flowed through a pipe to Medan. When we arrived in Medan, we could calculate 8 US dollars, deducting from 13 US dollars. But that might be suppressed again by 6 dollars per MMBtu, "Luhut said.

According to Luhut, the government will also look again at the gas structure. He said when the industrial gas price structure was opened, the government could decide which costs could be reduced. Previously, the Ministry of Industry (Kemenperin) stated that a reduction in gas prices by 68 percent increased state revenues of Rp 31.97 trillion.

According to the Ministry of Industry calculations, the domestic industry has difficulty competing at the global level with gas prices around the US $ 6-13.5 per MMBtu. The Ministry of Industry proposes 11 sectors to receive gas price discounts. The industrial sectors are fertilizer, petrochemical, oleochemical, steel / other metals, ceramics, glass, tires and rubber gloves, pulp and paper, food and beverages, as well as textiles and footwear.

Sojitz Corporation

While one other addition is an industrial area. The Ministry of Industry believes that the lower cost of energy will bring added value to domestic investment. The presence of the discourse of a decrease in gas prices, the Ministry of Industry claims investment commitments from several petrochemical companies.