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Indonesia govt to tighten gas distribution business

JAKARTA ( – The Indonesian government is planning to tighten natural gas distribution business aiming at preventing brokering practices in the trading of natural gas. Over the past years, some parties engage in gas trading do not have the capacity to build gas infrastructure. As a result, such practices create inefficiency in gas distribution.

To realize this plan, the Energy and Mineral Resources Ministry plans to amend the energy ministerial decree no. 26 in 2009 on gas supply and distribution.

Sudirman Said, the Energy and Mineral Resources Minister (ESDM), said at the weekend that under the current mechanism, the parties that receive gas allocation may resell the gas to other parties without having had to build gas infrastructure.

In the future, those who are engaging in the trading of gas must have the capacity to build gas infrastructure as well, the minister was quoted by Kompas as saying. (*)




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