- The Minister of Energy and Mineral Resources, Arifin Tasrif, has prepared three initiatives which may be employed in order to reduce the currently high price of industrial gas in Indonesia. The problem of high industrial gas prices has been ongoing since the issuance of Regulation of the President No. 40 of 2016 on the Determination of Natural-Gas Prices. However, several initiatives have now been prepared and Mr. Tasrif is hopeful that the price of industrial gas will start to fall by March 2020.
- Mr. Tasrif has expressed hope that the government will re-evaluate the distribution and commercial pricing models which are currently used in order to determine distribution prices. This measure is the first suggested option.
- The second option, according to Mr. Arifin, is the potential imposition of a Domestic Market Obligation (DMO) policy upon gas producers so that prices can be maintained.
- The third option involves easing imports of gas. Through such an initiative, private entities will be permitted to import gas and to develop industrial zones which are not connected to existing gas networks.
- Mr. Arifin has also emphasized that the three options outlined above are currently still being studied by the Ministry of Energy and Natural Resources.
- For more on this story, see Hukumonline: “Sejumlah Opsi ESDM Tekan Harga Gas Industri”.
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