Readiness of infrastructure in the form of gas pipelining was one of the important factors in supporting industrial growth. Moreover Indonesia had sufficient gas reserves to meet industrial need. Data of the ministry of industry had it that the need of gas for industry was estimated at 2,130 cube feet per day encompassing the need for raw materials and energy resources. The need for raw materials for industry was 1,022 million cube feet per day and for fuel 1,108 million cube feet per day. “There is hardly any problem is terms of gas availability, the problem now is how gas networking can be built” Panggah Susanto, the director general of basic manufacturing industry, ministry of industry, disclosed in Jakarta on Monday [10/6].
Panggah rated that development of additional gas pipelining using open access mechanism had become a pressing need whereby to support domestic development at home. He disclosed that industrial development of high competitiveness was highly reliant on availability of raw materials and energy. The application of gas as raw material and energy was key factor in manufacturing operations. He elaborated that the use of open access mechanism was a pressing necessity as many investors were standing on a queue to enter industry but gas supply was limited.
Panggah said that we would promote use to energy to step up industrial growth at home. He was hoping that the government would change their mindset from “state income relying on energy sales” to “state income relying on energy application.” According to Panggah, state’s income by way of pipelining gas to industry would yield more profit than to sell gas abroad as raw material. Besides there would be another source of income which was tax paid by industry.
Panggah further remarked that today there are still some regions having under supply of gas like West Java and North Sumatra. And yet industry including manufacturing was growing fast. In 2012, industry grew by up to 6.8% while this year growth was targeted at 7%. If there was no gas supply, the growth target might have to change. For that matter Panggah insisted that the industry could be assured of sufficient gas supply and stable price. He saw that the industries of metal, food & beverages, textile, ceramics and glassware were in need of gas supply but were having under supply.
He rated that growth of industry this year particularly steel, could be hindrance due to lack of gas supply while price was beyond control. Therefore Panggah believed that the ministry of industry still had to dissect the matter. He said that the ministry wished that the problem would be overcome as soon as possible. Panggah said that supply of gas to industries was today not in according with the agreed contract, which caused production to be hindrance. And yet national industry was constantly growing. If gas were well supplied, Panggah remarked, growth of steel industry might come to 10% this year.
Panggah mentioned that in 2012, growth of gas demand was posted at 6.5%. in 2013, demand grew by 7.5% and in 2014 it came to 8%. According to Panggah, the F&B industry was the greatest consumer of gas; followed by the industries of ceramics, glassware, tyres, hand gloves, fertilizers, and petro chemicals. The ministry of industry was expecting that the abundant gas resources spread out all over Indonesia could be benefited to the maximum. The development of non conventional gas potentials like Coal Bed Methane/CBM, shale gas, and development of coal glassification technology must also be developed for the domestic industry. (SS)
Business News - June 14,2013