TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Cheap gas incentives to cost government Rp 121.78 trillion in forgone revenue

With the cheap gas incentives,  seven gas-intensive industries can buy natural gas at $6 per million British thermal units (mmbtu), below the average $8 per mmbtu

Norman Harsono (The Jakarta Post)
Premium
Jakarta
Wed, May 6, 2020

Share This Article

Change Size

Cheap gas incentives to cost government Rp 121.78 trillion in forgone revenue Energy and Mineral Resources Minister Arifin Tasrif speaks during a video conference with members of House of Representative (DPR) Commission VII, which oversees energy, on May 4. (JP/Screenshot)

T

span lang="DE" style="mso-ansi-language:DE">The long-awaited cheap gas for certain industries will cost the government Rp 121.78 trillion (U$804.31 million) in forgone nontax revenue (PNPB) from gas production during the duration of the measure from 2020-2024, Energy and Mineral Resources Minister Arifin Tasrif has said.

On the other hand, the cheap gas would give the government additional income of about Rp 125.03 trillion mostly due to the significant cut in existing energy subsidies, Minister Arifin said during a virtual hearing with House of Representative (DPR) Commission VII on Monday.

Based on these estimates, the government would receive a net income of Rp 3.25 trillion from the cheap gas incentives, the minister added.

Under the policy, seven gas-intensive industries, namely the rubber gloves, ceramics, glass, steel, fertilizer, petrochemical and oleochemical industries can buy natural gas at $6 per million British thermal unit (mmbtu), below the average $8 per mmbtu.

“These industries have been hit. They went from 500,000 to only 300,000 workers,” he said during the hearing.

 

to Read Full Story

  • Unlimited access to our web and app content
  • e-Post daily digital newspaper
  • No advertisements, no interruptions
  • Privileged access to our events and programs
  • Subscription to our newsletters
or

Purchase access to this article for

We accept

TJP - Visa
TJP - Mastercard
TJP - GoPay

Redirecting you to payment page

Pay per article

Cheap gas incentives to cost government Rp 121.78 trillion in forgone revenue

Rp 29,000 / article

1
Create your free account
By proceeding, you consent to the revised Terms of Use, and Privacy Policy.
Already have an account?

2
  • Palmerat Barat No. 142-143
  • Central Jakarta
  • DKI Jakarta
  • Indonesia
  • 10270
  • +6283816779933
2
Total Rp 29,000
{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.