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Jakarta Post

197 companies secure cheap gas prices, contracts to be signed in May

  • Norman Harsono

    The Jakarta Post

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Jakarta   /   Thu, April 16, 2020   /  05:47 pm
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Two workers from state-owned gas company Perusahaan Gas Negara (PGN) check gas pipelines supplying PT Indonesia Power at a gas meter station in Tambak Lorok, Semarang, Central Java.(JP/Suherdjoko)

One hundred and ninety-seven companies will buy gas at US$6 per million British thermal units (mmbtu), below the $8 per mmbtu market average, as promised by a Presidential Regulation issued in 2016. The Energy and Mineral Resources (ESDM) Ministry issued a decree on April 13 stipulating that the companies, which fall within seven gas-reliant industries, are to prepare gas purchasing contracts with their respective government-assigned suppliers within one month. The 197 companies, among others, include five fertilizer producers, 46 petrochemical companies, 56 steel companies, 59 ceramics producers, 16 glassware companies, six glove producers and nine oleochemical companies. “So there is progress, but hopefully, there won’t be bureaucratic hurdles,” said Johnny Darmawan, vice chairman for oil and industry at the Indonesian Chamber of Commerce and Industry (K...