Beneficiary industries are asked to optimize gas price incentives, said the association
ILLUSTRATION. Chairman of the Indonesian Oleochemical Producers Association (Apolin) Rapolo Hutabarat.
Reporter: Great Philemon | Editor: Handoyo.
KONTAN.CO.ID – JAKARTA. The government, through the Ministry of Industry, hopes that the implementation of gas prices of US $ 6 per mmbtu for 7 industrial sectors can be further optimized.
Minister of Industry Agus Gumiwang Kartasasmita revealed that the total volume of gas distribution for the 176 companies reached 957 thousand to 1.18 million bbtud. “We, the government, firmly believe that the industrial sector that can benefit from gas prices can strengthen competitiveness against products from other countries,” Agus said in a Virtual Press Conference, Monday (28/12).
On the other hand, the Director General of the Chemical, Pharmaceutical and Textile Industry of the Ministry of Industry Muhammad Khayam said that when referring to Presidential Decree 40/2016, the beneficiary industry must increase tax contributions. “Second, they are encouraged to expand. So if the performance is not good, there are companies (which will) be raised to US $ 6.5 per MMBTU or US $ 7 per mmbtu,” said Khayam in a virtual discussion, Wednesday (9/12).
Responding to this, the Chairman of the Indonesian Oleochemicals Producers Association (APOLIN) Rapolo Hutabarat said that currently there are 9 association member companies that have received these benefits. Rapolo continued, his party hopes that there will be consistency in regulations from the government. “With consistent regulations, investment will increase and business certainty is more secure,” said Rapolo to Kontan.co.id, Monday (28/12).
Also Read: The Ministry of Industry will apply a gas price of US $ 6 per mmbtu for other industries
Rapolo continued, his party assesses that the gas price of US $ 6 per mmbtu will be enforced in the long term in order to increase competitiveness. In addition, Rapolo assessed that the impact of the implementation of the new gas price might be seen in the first semester of 2021, because the implementation will only begin in the middle of this year.
Meanwhile, Chairman of the Indonesian Iron and Steel Industry Association, Silmy Karim, said that previously the price of gas for industry in Indonesia was somewhat more expensive than other countries, including in the Asian region. “(Gas prices) encourage it to be more competitive, other countries have cheaper gas,” said Silmy when contacted by Kontan.co.id, Monday (28/12).
Silmy continued, the evaluation was indeed carried out to see the application of gas prices and the impact on the competitiveness of the national industry. Nevertheless, he confirmed that not all association members had accepted the implementation of this US $ 6 per mmbtu gas price. “If all of them are certainly not, because there are processes and conditions,” concluded Silmy.
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