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Jakarta Post

PLN and other power companies added to list of recipients of cheap gas

  • Norman Harsono

    The Jakarta Post

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Jakarta   /   Tue, April 28, 2020   /  12:16 pm
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A technician of state-owned gas company PGN inspects gas pipelines at the company’s metering and regulating station in Medan, North Sumatra.(Antara/Irsan Mulyadi)

The government has added the power generation industry to a list of industries eligible for cheap gas, a non-fiscal incentive intended to improve the competitiveness of the country’s key industries. The Energy and Mineral Resources Ministry issued on April 6 Regulation No. 10/2020, which stipulates that state-owned electricity company PLN and independent power producers (IPPs) can buy gas at US$6 per million British thermal unit (mmbtu), below the market average of $8 per mmbtu. The incentive, which has also been given to nearly 200 companies engaged in key industries, is subject to ministerial approval on a case-by-case basis. Energy ministry spokesman Agung Pribadi said on Monday that the government would slash non-tax state revenue from upstream and midstream gas operations to reduce gas prices. “The price adjustment will not affect contractors’ income,&r...