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Jakarta Post

Jokowi wants gas prices slashed to below $6 per mmbtu in November

  • Ayomi Amindoni
    Ayomi Amindoni

    The Jakarta Post

Jakarta   /   Tue, October 4, 2016   /  08:07 pm
Jokowi wants gas prices slashed to below $6 per mmbtu in November All set – A field worker with oil and gas producer PT Saka Energi Indonesia (SEI) measures the level of hydrogen sulfide and carbon dioxide at the onshore processing facilities at its wholly owned offshore Pangkah block in Gresik, East Java, on Sept.29. (JP/Wahyoe Boediwardhana)

President Joko “Jokowi” Widodo expects gas prices for the industry sector to be slashed to below US$6 per million British thermal unit (mmbtu) by the end of November, far lower than the current price, which stands at around $ 9.50 per mmbtu.

Cabinet Secretary Pramono Anung said on Tuesday that President Jokowi had instructed Coordinating Economic Minister Darmin Nasution, Coordinating Maritime Affairs Minister Luhut Pandjaitan, Industry Minister Airlangga Hartarto and Finance Minister Sri Mulyani Indrawati to immediately finalize the price cuts of natural gas for the industry sector within the next two months.

"The gas price must be cut to below $6 per mmbtu from $9.50," Pramono said during a press conference after a limited Cabinet meeting on gas prices for the industry at the State Palace in Jakarta on Tuesday.

Airlangga said it was expected that the reduction of gas prices for the industry sector could have a multiplier effect on the development of industries needed to boost competitiveness in the country.

"We have identified 10 industrial sectors and one industrial area, which will have a gas price of below $6 mmbtu," he said.

The 10 industries include fertilizer, petrochemical, food and beverage, footwear, gloves, pulp and paper, ceramics and steel industries.

Airlangga said the new gas price for the industry sector could take effect on Jan.1, 2017. (ebf)

 

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