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Ada Pertanyaan? Hubungi Kami
Kartini L Makmur, Robert Sidauruk
Following efforts by the Government to increase the domestic processing and refinery of mineral though its ban on the export of raw minerals, the Indonesian Chamber of Commerce (Kadin) has urged the Government to ensure sufficient gas supply, particularly for businesses that have committed to establishing a smelter in Indonesia.
“Certainty the gas supply is crucial for establishing smelters, both for domestic and foreign investors,” said Natsir Mansyur, Vice Chairman of Kadin, in Jakarta last Thursday.
Mr. Mansyur indicated that over the next five years, investment in smelter facilities could reach USD 45 billion and save the State Budget approximately USD 35 billion. New smelters will also produce materials for domestic demand, which will in turn reduce imports.
In return for the economic benefits provided by smelters, the Government must ensure a sufficient gas supply for them. This could be done by allocating gas supply for smelters in national gas plan (neraca gas nasional).
“The Government should incorporate gas allocation for smelters in its national gas plan to give certainty to investors,” added Mr. Mansyur.
Responding to the request, Ismu, Head of the Oil and Gas Program at the Directorate General of Oil and Gas, commented that the Government will ensure the supply of gas for smelters. However, Mr. Ismu could not clarify whether gas supply for smelters will be set as a priority activity for national gas.
Mr. Ismu further explained that the Government has already allocated gas supply to several prioritized activities under the Minister of Energy and Mineral Resources Regulation No. 3 of 2010.
Under this regulation, the Government has set gas supply as a priority for two industries, the fertilizer industry and power plants.
“At present, the Government cannot ensure whether supplying gas for smelters, even for electricity purposes, is categorized as a priority activity,” added Mr. Ismu.
Meanwhile, Zudaldi Rafdi, Head of Communications and Protocol at the Special Works Unit for Upstream Oil and Gas Activities (SKK Migas), explained that given the current positive indications for national gas production, investors should not be worried about the gas supply for their smelters.
According to Mr. Rafdi, Indonesia’s current gas production has reached 8,000 MMSCFD, while current domestic demand for gas approximately only represents half of that or 4,000 MMSCFD.
Furthermore, Mr. Rafdi also informed that current national export marketability levels for gas indicates weakness resulting in a surplus of gas that may be used for other domestic purposes.
“We have enough gas allocation for smelters. It is now up to the Government’s policy to regulate the matter,” said Mr. Rafdi.
(hot/kc)
Following efforts by the Government to increase the domestic processing and refinery of mineral though its ban on the export of raw minerals, the Indonesian Chamber of Commerce (Kadin) has urged the Government to ensure sufficient gas supply, particularly for businesses that have committed to establishing a smelter in Indonesia.
“Certainty the gas supply is crucial for establishing smelters, both for domestic and foreign investors,” said Natsir Mansyur, Vice Chairman of Kadin, in Jakarta last Thursday.
Mr. Mansyur indicated that over the next five years, investment in smelter facilities could reach USD 45 billion and save the State Budget approximately USD 35 billion. New smelters will also produce materials for domestic demand, which will in turn reduce imports.
In return for the economic benefits provided by smelters, the Government must ensure a sufficient gas supply for them. This could be done by allocating gas supply for smelters in national gas plan (neraca gas nasional).
“The Government should incorporate gas allocation for smelters in its national gas plan to give certainty to investors,” added Mr. Mansyur.
Responding to the request, Ismu, Head of the Oil and Gas Program at the Directorate General of Oil and Gas, commented that the Government will ensure the supply of gas for smelters. However, Mr. Ismu could not clarify whether gas supply for smelters will be set as a priority activity for national gas.
Mr. Ismu further explained that the Government has already allocated gas supply to several prioritized activities under the Minister of Energy and Mineral Resources Regulation No. 3 of 2010.
Under this regulation, the Government has set gas supply as a priority for two industries, the fertilizer industry and power plants.
“At present, the Government cannot ensure whether supplying gas for smelters, even for electricity purposes, is categorized as a priority activity,” added Mr. Ismu.
Meanwhile, Zudaldi Rafdi, Head of Communications and Protocol at the Special Works Unit for Upstream Oil and Gas Activities (SKK Migas), explained that given the current positive indications for national gas production, investors should not be worried about the gas supply for their smelters.
According to Mr. Rafdi, Indonesia’s current gas production has reached 8,000 MMSCFD, while current domestic demand for gas approximately only represents half of that or 4,000 MMSCFD.
Furthermore, Mr. Rafdi also informed that current national export marketability levels for gas indicates weakness resulting in a surplus of gas that may be used for other domestic purposes.
“We have enough gas allocation for smelters. It is now up to the Government’s policy to regulate the matter,” said Mr. Rafdi.
(hot/kc)
Kartini L Makmur, Robert Sidauruk
Following efforts by the Government to increase the domestic processing and refinery of mineral though its ban on the export of raw minerals, the Indonesian Chamber of Commerce (Kadin) has urged the Government to ensure sufficient gas supply, particularly for businesses that have committed to establishing a smelter in Indonesia.
“Certainty the gas supply is crucial for establishing smelters, both for domestic and foreign investors,” said Natsir Mansyur, Vice Chairman of Kadin, in Jakarta last Thursday.
Mr. Mansyur indicated that over the next five years, investment in smelter facilities could reach USD 45 billion and save the State Budget approximately USD 35 billion. New smelters will also produce materials for domestic demand, which will in turn reduce imports.
In return for the economic benefits provided by smelters, the Government must ensure a sufficient gas supply for them. This could be done by allocating gas supply for smelters in national gas plan (neraca gas nasional).
“The Government should incorporate gas allocation for smelters in its national gas plan to give certainty to investors,” added Mr. Mansyur.
Responding to the request, Ismu, Head of the Oil and Gas Program at the Directorate General of Oil and Gas, commented that the Government will ensure the supply of gas for smelters. However, Mr. Ismu could not clarify whether gas supply for smelters will be set as a priority activity for national gas.
Mr. Ismu further explained that the Government has already allocated gas supply to several prioritized activities under the Minister of Energy and Mineral Resources Regulation No. 3 of 2010.
Under this regulation, the Government has set gas supply as a priority for two industries, the fertilizer industry and power plants.
“At present, the Government cannot ensure whether supplying gas for smelters, even for electricity purposes, is categorized as a priority activity,” added Mr. Ismu.
Meanwhile, Zudaldi Rafdi, Head of Communications and Protocol at the Special Works Unit for Upstream Oil and Gas Activities (SKK Migas), explained that given the current positive indications for national gas production, investors should not be worried about the gas supply for their smelters.
According to Mr. Rafdi, Indonesia’s current gas production has reached 8,000 MMSCFD, while current domestic demand for gas approximately only represents half of that or 4,000 MMSCFD.
Furthermore, Mr. Rafdi also informed that current national export marketability levels for gas indicates weakness resulting in a surplus of gas that may be used for other domestic purposes.
“We have enough gas allocation for smelters. It is now up to the Government’s policy to regulate the matter,” said Mr. Rafdi.
(hot/kc)
Following efforts by the Government to increase the domestic processing and refinery of mineral though its ban on the export of raw minerals, the Indonesian Chamber of Commerce (Kadin) has urged the Government to ensure sufficient gas supply, particularly for businesses that have committed to establishing a smelter in Indonesia.
“Certainty the gas supply is crucial for establishing smelters, both for domestic and foreign investors,” said Natsir Mansyur, Vice Chairman of Kadin, in Jakarta last Thursday.
Mr. Mansyur indicated that over the next five years, investment in smelter facilities could reach USD 45 billion and save the State Budget approximately USD 35 billion. New smelters will also produce materials for domestic demand, which will in turn reduce imports.
In return for the economic benefits provided by smelters, the Government must ensure a sufficient gas supply for them. This could be done by allocating gas supply for smelters in national gas plan (neraca gas nasional).
“The Government should incorporate gas allocation for smelters in its national gas plan to give certainty to investors,” added Mr. Mansyur.
Responding to the request, Ismu, Head of the Oil and Gas Program at the Directorate General of Oil and Gas, commented that the Government will ensure the supply of gas for smelters. However, Mr. Ismu could not clarify whether gas supply for smelters will be set as a priority activity for national gas.
Mr. Ismu further explained that the Government has already allocated gas supply to several prioritized activities under the Minister of Energy and Mineral Resources Regulation No. 3 of 2010.
Under this regulation, the Government has set gas supply as a priority for two industries, the fertilizer industry and power plants.
“At present, the Government cannot ensure whether supplying gas for smelters, even for electricity purposes, is categorized as a priority activity,” added Mr. Ismu.
Meanwhile, Zudaldi Rafdi, Head of Communications and Protocol at the Special Works Unit for Upstream Oil and Gas Activities (SKK Migas), explained that given the current positive indications for national gas production, investors should not be worried about the gas supply for their smelters.
According to Mr. Rafdi, Indonesia’s current gas production has reached 8,000 MMSCFD, while current domestic demand for gas approximately only represents half of that or 4,000 MMSCFD.
Furthermore, Mr. Rafdi also informed that current national export marketability levels for gas indicates weakness resulting in a surplus of gas that may be used for other domestic purposes.
“We have enough gas allocation for smelters. It is now up to the Government’s policy to regulate the matter,” said Mr. Rafdi.
(hot/kc)