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Jakarta Post

Indonesia plans deeper gas price cuts

  • Fedina S. Sundaryani

    The Jakarta Post

Jakarta   /   Tue, August 16 2016   /  08:36 am

The government is considering proposing another price cut for natural gas sold to the fertilizer industry after recently providing a similar incentive to the industry.

Last month, the Energy and Mineral Resources Ministry issued a new regulation stating that the minister could lower prices for certain industries by a maximum of US$2 per 1 million British thermal units (mmbtu) if gas prices were higher than $6 per mmbtu.

However, former minister Arcandra Tahar said on Monday the government was planning to lower the margin even further so that the minister could lower prices if they were higher than $4 per mmbtu for the fertilizer industry.

“Our industries need to live. In order to do so, we have to study whether or not it is possible to lower the limit to $4 [per mmbtu], as many other countries have implemented this,” he told reporters following a meeting at the...