Gov’t to Lower Industrial Gas Price on 1 April
Date 18 Maret 2020
The Government to lower price of industrial gas to US$6 per MMBTU (Million British Thermal Unit) as of 1 April 2020, according to Coordinating Minister for Economic Affairs Airlangga Hartarto.
“The President, during a Limited Meeting, has instructed to strengthen gas infrastructure and lower industrial gas price to US$6 per MMBTU through Domestic Market Obligation (DMO) policy or import policy,” the Minister said in an online press conference, Wednesday (18/3).
To set the price of US$6 per MMBTU, price of upstream gas must be reduced to around US$4-4.5 per MMBTU, and transportation and distribution cost can be reduced to around US$1.5-2 per MMBTU.
Another policy formulated in the Limited Meeting is a plan to amend Presidential regulation Number 40 of 2016 that would not only lower industrial gas price but also lower electricity price.
Also on the occasion, Airlangga said that acceleration of export and import is part of the second emergency stimulus package on National Logistic Ecosystem (NLE).
“The President asked the NLE to be established and has integrated system among ministries/institutions. The NLE also enables process simplification and scraps repetitive process that will contribute to lower national logistics cost,” he said.
We expect, he added, logistics cost can be reduced to 17 percent from the previous 24 percent. Through process simplification and data integration among related ministries/institutions, it will create a well-integrated system and cut repetitive process in the service. Therefore, importers and exporters just give one data that will serve as a list profile for all ministries/institutions.
The Minister went on to say that the implementation of NLE will be assigned to Directorate General of Customs and Excise and involved the Corruption Eradication Commission (KPK) for supervisory function. A Presidential Instruction will be stipulated to facilitate the system. (TGH/EN)
Translated by : Rany Anjany S
Reviewed by: Mia Medyana B