Indonesia govt decides to cut gas prices sold to strategic industries

JAKARTA (RAMBUENERGY.COM) – Industry players demand to reduce gas price sold to priority industries has finally been responded well by the government. On Wednesday, the Indonesian Coordinating Ministry for the Economy agreed to reduce gas price sold to strategic industries that have multiplier effects, namely fertilizer, steel and petrochemical.

Industry Minister Airlangga Hartarto told reporters on Wednesday after holding a coordinating meeting, which was also attended by related ministries and stakeholders, that the three sectors were chosen as these industries play crucial role in stimulating the development of downstream industry sector.

Airlangga expects the reduction of the gas price will ultimately add government revenues and support the government’s drive to post economic growth target of 5.5 percent in 2018.

He said the new gas price scheme is scheduled to be announced at the end of this month. The gas price sold to other industries are being discussed by the government.

Earlier, the Industry Ministry proposed 10 strategic industries that need lower gas price, namely fertilizer, petrochemical, oleochemical, steel/metal, ceramic, glass, tyre and gloves, pulp and paper, food and beverage, textile and shoe industries. (*)

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