MESDM: Gas Prices to Decline 30%

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sdrmnJAKARTA – The government through the Ministry of Energy and Mineral Resources (ESDM) said gas prices in Indonesia may drop. Gas price reduction of up to 30% of this will be driven Government through tangible steps.

“Analyzing of various inputs, many parties argued that the price of gas in Indonesia is not competitive when compared to similar industries in various countries. Governance of gas keeps us fix from time to time to make it more conducive to industry. We will continue to push for gas prices can be reduced up to 30%, “Sudirman said in a statement on Sunday (29/11/2015).

According to Sudirman, reduced the price of gas is believed to spur growth in the downstream sector that currently exist and will invite new investments not only in downstream but also directly stimulate investment in upstream oil and gas sector.

Decline in gas prices will be driven up to 30% Government through concrete steps. From the upstream side of the gas price reduction is done by reducing the government take. In the midstream and distribution, the price reduction will be done by applying a margin so regulated transmission and distribution charges can be applied fairly. The establishment of a national gas buffer agency will ensure the provision and a decrease in gas prices, with a more simplified system.

Sudirman Said also appreciates the idea of ​​integration between PT PGN and PT Pertagas he said, business integration between PT PGN Tbk. PT Pertagas, a subsidiary of PT Pertamina (Persero) is a policy that would largely affect the efficiency of the gas business.

“Investing in infrastructure will be more efficient. Also the open-access system can be applied immediately. Of course, a comprehensive study should be preceded denan but if we oriented macro impact, I believe we can find solutions” said Sudirman.

Related ESDM No. 37 2015, the government reiterated that one of its aims is to reduce transaction costs, both from the distribution chain and transportation cuts. “The allocation of gas to traders can only be granted to enterprises, public enterprises and enterprises which have the facilities and can only be sold to the end user. Thus traders gas layers that make the margin is relatively high can be eliminated,” said Director General of Oil and Gas, Wiratmadja.