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Businesses call on govt to scrap planned gas price hike
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PGN's floating storage and regasification unit (FSRU) in Lampung. (PGN/PGN)
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usinesses in Indonesia have urged the government to drop its planned natural gas price hike, saying the policy lacks immediate necessity and carries significant risks to the economy.
The Indonesian Employers Association (Apindo) laments the unfortunate price escalation conducted by the state-owned gas distributor Perusahaan Gas Negara (PGN), citing the steady global liquefied natural gas (LNG) price over the past four months as compelling evidence against the proposed increase.
Apindo chairwoman Shinta W. Kamdani warned that the gas price increase would erode the competitiveness of the domestic industry. The existing price paid by local firms is one of the highest among ASEAN countries.
“There is a potential risk that investments will shift to neighboring countries,” Shinta told Kontan on Monday.
“We’re hoping that the government will reassess the plan and consider either delaying or canceling the proposed natural gas price increase,” she added, noting that the government should discuss the plan with the relevant industries beforehand.
Read also: PGN awaits regulator’s clarity to secure more gas supply
The government separates gas prices into two distinct groups.
