Tuesday, 3 July 2012


Minister of Energy and Mineral Resources, Jero Wacik, met with Industry Minister, Mohamad S. Hidayat and Head of Oil & Gas Regulator (BP Migas), R. Priyono.

The government received inputs from industries concerning plan on gas price increase, responding to price increase in the upstream sector (producer) who already occurred. Gas price increase is due to increase in gas price in the upstream sector (producer). The meeting is also attended by Director General of Oil and Gas, Evita H. Legowo, and President Director of PT PGN (Persero), Tdk, Hendy Prio Santoso.

“We received complaints and inputs from businesses who consume gas. Some of them said that gas price increase is acceptable providing that gas supply is assured. There are some of them who proposed price increase to be applied gradually. We hear and discuss all the inputs”, Minister of Energy and Mineral Resources, Jero Wacik, told Business News (6/19).

The plan on gas price increase has been discussed with the related ministries, namely the Industry Ministry and BP Migas. The Ministry of Energy and Mineral Resources studied the cost in the upstream and downstream sectors. Then, there will be a follow-up to increase gas price up to 55 percent. The implementation will take one week at the latest. The government is in the opinion that result will be in favor of national interest. “Particularly in the downstream sector, our industry could see how much the reasonable price is. Industrial activities can continue, and the industries will continue to get profit”.

Discussion and calculation of rate of gas price increase until the next week will be performed by BP Migas, Director General of Oil and Gas, and PGN.

The Industry Ministry gives appreciation for the delay of gas price increase. The industry demanded priority on certainty of gas supply, for lifting, for the State Electricity Company (PLN), for fertilizer, and for industries in general. “They see the rate on price increase can be revised”, Industry Minister, MS Hidayat, told Business News (6/19).

Our industry growth reaches 6.9 percent. Therefore, the GDP is not stagnant only because of gas supply problem. The key to settle the problem is by reaching a mutual consensus. “The consensus has been achieved, but it is still awaiting perfection of the regulation for another one week, and it will be published as government’s decision. I wish that this problem could be settled within one week so it will not become a political issue. The Industry Ministry and the Ministry of Energy and Mineral Resources will meet with more than 30 industry associations to explain to them so that industrial activities can continue operating without any problem”.

PT Pertamina expressed its concern over the conflict involving the local community and apparatus in Bengkulu. The conflict is potential to hamper distribution of LPG in the region concerned. Pertamina is forced to temporary close duel station (SPBU) and Pertamina’s housing in Bukit Senyum, Batam due to the conflict around the location.

The conflict has caused 3 people dead and 17 people injured. The incident occurs on LPG skid tank route from supply point to Bengkulu. 11 units of skid tanks carrying LPG are stuck at Lubuk Linggau until the condition is really safe.

“There in no alternative route from South Sumatera to Bengkulu. “We are still searching for a solution so that the skid tanks could immediately arrive at Bengkulu”, Vice President Corporate Communication of Pertamina, Mochamad Harun, told Business News (6/20).

In Batam, Pertamina is forced to temporarily close one unit of SPBU and performs tight guarding of Pertamina’s housing in Bukit Senyum as anticipation of potential conflict of the local communities around Planet Holiday 1 Hotel, Batam. Police offices and security apparatuses are readied on both points to prevent destruction or other anarchist actions.

Business News - June 22, 2012



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