Business Complaining with the Newly Increased Gas Fuel Price

 
Nadia Maharani, Kartika L. Makmur
 
In the midst of low economic growth, increasing fuel prices was least expected by businesses. The unpopular move made by the current government fueled dislikes among the society and businesses. Nevertheless the Joko Widodo administration proceeded with its plan to recover the economy and further allocate budget for economy and energy development.
 
The government has appointed the Ministry of Energy and Mineral Resources to increase the gas fuel price as a strategy while at the same time maximizing their efforts to attract private companies to invest in the country in the energy sector by offering greater profit.
 
“Companies’ profits in the gas fuel sector are currently very low. The government suggested the adjustment of the price is to attract investors to pitch in, in the sector of gas fuel development. Private companies would be interested to invest if profits are high,” said IGN Wiratmaja Puja, Director General of Oil and Gas at Ministry of ESDM, last Tuesday.
 
Mr. Puja further stated that the decree of gas fuel price adjustment is currently being drafted and has received the Presidential approval for the petition. However, he emphasized that the price increase may not exceed 60%.
 
Gas fuel production companies seemed to be the sole party that is in favor of the latest policy while the government generated negative feedback from businesses that utilize natural gas. Entrepreneurs incorporated in the Industrial Forum of Natural Gas Consumer (FIPGB) were appalled by the decision of the government that should have been mutually discussed and that the policy should not pose difficulties for them and the society.
 
“Difficulties will arise for industries that utilize gas fuel as energy source and raw materials,” said Amchad Safiun, Head of FIPGB.
 
According to Saifun, the increase in gas price has already taken place when it was announced to the public by the State Gas Enterprise (PT Perusahaan Negara – “PGN”) on July 31st and it was in force on August 1st.
 
“Without previous notifications, producers were informed one night prior to the price increase,” criticized Mr. Safiun.
 
Previously, ESDM Minister, Sudirman Said stated his commitment to support the growth of processing industries in prioritizing them in energy uses, including gas to achieve a competitive energy price as the base for economy development.
 
Due to the gas price increase policy, the FIPGB sent an official appeal for an objection to the Ministry of Energy and Mineral Resources (ESDM) and the Ministry of Finance with the argument that the government should support industrial gas by supplying gases at an affordable price, such as Malaysia and Singapore despite the fact that the neighboring countries possess a more advanced gas infrastructure.
 
“Our government should also support us by supplying gases at an affordable price,” asserted Mr. Safiun.
 
(hot/ja/sp)
 
Nadia Maharani, Kartika L. Makmur
 
In the midst of low economic growth, increasing fuel prices was least expected by businesses. The unpopular move made by the current government fueled dislikes among the society and businesses. Nevertheless the Joko Widodo administration proceeded with its plan to recover the economy and further allocate budget for economy and energy development.
 
The government has appointed the Ministry of Energy and Mineral Resources to increase the gas fuel price as a strategy while at the same time maximizing their efforts to attract private companies to invest in the country in the energy sector by offering greater profit.
 
“Companies’ profits in the gas fuel sector are currently very low. The government suggested the adjustment of the price is to attract investors to pitch in, in the sector of gas fuel development. Private companies would be interested to invest if profits are high,” said IGN Wiratmaja Puja, Director General of Oil and Gas at Ministry of ESDM, last Tuesday.
 
Mr. Puja further stated that the decree of gas fuel price adjustment is currently being drafted and has received the Presidential approval for the petition. However, he emphasized that the price increase may not exceed 60%.
 
Gas fuel production companies seemed to be the sole party that is in favor of the latest policy while the government generated negative feedback from businesses that utilize natural gas. Entrepreneurs incorporated in the Industrial Forum of Natural Gas Consumer (FIPGB) were appalled by the decision of the government that should have been mutually discussed and that the policy should not pose difficulties for them and the society.
 
“Difficulties will arise for industries that utilize gas fuel as energy source and raw materials,” said Amchad Safiun, Head of FIPGB.
 
According to Saifun, the increase in gas price has already taken place when it was announced to the public by the State Gas Enterprise (PT Perusahaan Negara – “PGN”) on July 31st and it was in force on August 1st.
 
“Without previous notifications, producers were informed one night prior to the price increase,” criticized Mr. Safiun.
 
Previously, ESDM Minister, Sudirman Said stated his commitment to support the growth of processing industries in prioritizing them in energy uses, including gas to achieve a competitive energy price as the base for economy development.
 
Due to the gas price increase policy, the FIPGB sent an official appeal for an objection to the Ministry of Energy and Mineral Resources (ESDM) and the Ministry of Finance with the argument that the government should support industrial gas by supplying gases at an affordable price, such as Malaysia and Singapore despite the fact that the neighboring countries possess a more advanced gas infrastructure.
 
“Our government should also support us by supplying gases at an affordable price,” asserted Mr. Safiun.
 
(hot/ja/sp)
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