Industry requests special gas prices during energy transition

Jakarta – The industrial world questioned the government’s commitment to setting special prices for gas commodities during the green energy transition period since not all industries can enjoy the special price, the industry spokesman said Monday (1/8).

“Many businesses have not enjoyed the special gas price, since the regulation that regulates the special price was issued,” said Deputy of the Natural Gas User Industry Forum (FIPGB), Achmad Widhjaja in a written statement.

He said, there are several factors that have caused the government to not optimally apply a special price on gas. The complaints are mostly on the complicated bureaucracy to get the special prices. Even though the business actors have fulfilled all the requirements, they have not yet received certainty.

“This very, very tedious and tiring process makes the industry no longer committed to using gas,” Widhjaja said.

However he said that he is ready to sit down with the government and other stakeholders to solve this problem, adding that the industry was willing to buy gas at a price of USD 6 per MMBTU, as long as the process is not complicated.

Widhjaja said, the government must immediately decide on the gas price as a political decision and ensure that it will last for a long time.

Due to the lack of clarity on the government’s commitment to gas prices, business actors have returned to using fossil fuels. On the other hand, the government encourages the use of gas as part of the energy transition. If this condition continues, the industry will suffer losses. Not using environmentally friendly raw materials will give the industry a bad reputation. More and more export destination countries require products with environmentally friendly raw materials. (Hartatik)


Banner photo: PT Pertamina Hulu Energi (PHE), as Pertamina’s Subholding Upstream, through PT Pertamina Hulu Energi Offshore North West Java (PHE ONW) managed to find oil and gas reserves from drilling the GQX-1 exploration well in North Java waters. (Source: Pertamina)

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