President Joko Widodo (Jokowi) wants the price of gas for the industry to fall to the US $ 6 per MMBTU so that the tread is far different from neighboring countries so that the industry's competitiveness increases. In fact, the economic price of gas in neighboring countries is not cheaper than in Indonesia.
"The price of gas in a country cannot apply to apply compared. For example, the price of gas in Singapore and Indonesia, or the price of gas in Malaysia and Indonesia, "said energy observer from the Reforminer Institute Pri Agung Rakhmanto.
According to him, gas prices in Malaysia are certainly lower because of subsidies from the government. But apparently in Singapore, the gas sold is not entirely subsidized by the government so there are those whose prices are much more expensive.
Based on the length of gas providers in Singapore, the average gas price in the country reaches the final consumer of around US $ 18.5 per MMBtu. While the price of gas in Malaysia, due to subsidies is only US $ 6.6 per MMBtu.
In China, the price of gas is the US $ 15 per MMBtu and in Thailand US $ 7.5 per MMBtu. This figure does not differ much from Indonesia, which is around the US $ 9 per MMBtu. Pri Agung indicated that information about the neighboring country's gas prices received by President Joko Widodo was incorrect.
"So help anyone who conveys information to President Jokowi not to fragment as if our gas prices are the highest," said Pri Agung.
Petronas Indonesia Country Chairman Mohamad Zaini also revealed that gas prices between countries cannot be compared. This is because many aspects affect the amount of gas prices. In Malaysia, he admitted that domestic gas prices could be cheap because they were subsidized by the government.
"If it is not subsidized, the price will be the US $ 8-9 per MMBtu," Mohamad Zaini.
Investor Daily, Page-9, Thursday, Oct 13, 2016
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