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Jakarta Post

PGN cancels plan to raise industrial gas prices

  • Norman Harsono

    The Jakarta Post

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Jakarta   /   Mon, November 4, 2019   /  01:24 pm
The Jakarta Post Image
Engineers of Perusahaan Gas Negara (PGN) examine gas pipes that will be installed to supply the Tambak Aji industrial estate in Semarang, Central Java, in this file picture from 2014.(tribunnews.com/Wahyu Sulistiyawan )

Publicly listed gas company PGN has canceled a plan to raise industrial gas prices next month after receiving protests from local businesses since September. The decision to cancel the price hike came from the Energy and Mineral Resources Ministry, which owns a majority of PGN through state-owned energy holding company Pertamina. In a carefully worded statement, PGN said the ministry’s decision was regrettable because the company would have used the higher revenue margins to finance expanding its gas distribution network. Indonesia is set on having natural gas contribute at least 22 percent of total energy consumption by 2025 as mandated under the General Planning for National Energy (RUEN) road map. Natural gas contributed 18 percent to the energy mix last year. “PGN realizes that consumer incentives in all sectors cannot be maintained forever because PGN also ha...