The government has added the power-generation industry to a list of industries eligible for cheap gas, a nonfiscal 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 electricity firm 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 nontax state revenue from upstream and midstream gas operations to reduce gas prices.

“The price adjustment will not affect contractors’ income,” he sa...

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