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Business players ask the government to reduce the price of gas

11 February 2019 03:25 PM  Company: []
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JAKARTA. Business players from a number of industrial sectors asked the government to fulfil its promise to reduce gas prices to US$ 6 per MMBTU, as in Presidential Regulation (Perpres) Number 40 of 2016.

Yustinus Gunawan, Chair of Float and Safety Glasses Association (AKLP), said that the glass industry currently does not think that the current price of gas is in accordance with Presidential Regulation Number 40. Gunawan said that gas prices could actually be dropped to US$ 6 per MMBTU, even without government subsidies. "The regulation was not implemented," Gunawan said as quoted by Kontan on Monday (11/2).

Gas prices for the glass industry are currently in the range of US$ 8.2-US$ 9.2 per MMBTU. Gunawan explained that the current high gas prices hamper the growth of the glass industry. "Because of that, prolonged deindustrialization occur," Gunawan explained.

In addition, the ceramic industry also does not think that the current gas prices is at the level of US$ 6 per MMBTU. Elisa Sinaga, Chair of the Indonesian Ceramic Industry Association (Asaki), said that the ceramics industry still buys gas for US$ 7-US$ 9 per MMBTU. (KR/AR)