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View all search resultsIndustry group decries supply shortage, high prices in cheap gas program
The HKI is urging the government to fulfill its fixed priced for industrial gas, or else open the door to imports if the available domestic supply was not enough to meet demand.
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A technician checks a pipeline valve at the onshore receiving facility (ORF) of state-owned natural gas company PT Pertamina Gas in Porong, Sidoarjo, East Java. (Antara/ Zabur Karuru)
T
he Indonesian Industrial Estate Association (HKI) has raised concerns over in the government’s fixed natural gas price (HGBT) policy for industries, citing unfulfilled commitments on both pricing and supply.
HKI chairman Akhmad Maruf said many investors had reported receiving gas prices and quotas that fell short of the government’s promises.
“The gas supply shortage is causing difficulties for the industrial sector because the available gas is being exported to Singapore instead of being used in domestic industrial areas,” Maruf said on Monday, as reported by Bisnis.com.
“Of course it’s not easy, but we will continue to monitor and push the government to prioritize domestic gas demand over exports to Singapore,” he emphasized.
The HKI, which groups companies that manage and develop industrial estates in the country, is working to ensure that all tenant businesses have access to HGBT so they can compete with regional producers.
To address the issue, the association is urging the Industry Ministry, the Investment Ministry and the National Development Planning Agency (Bappenas) to provide energy supply security for industries.
Read also: Natural gas subsidy to continue at higher prices, minister says
