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
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