PT Pertamina (Persero) as the sub holding of PT Perusahaan Gas Negara Tbk (PGN), have successfully set the price of natural gas to be $6 per MMBTU (Million British Thermal Units).
This is done to push competitiveness in the industry, in correlation with the decision by the Ministry of Energy and Mineral (ESDM) 89K/2020.
This pricing policy to $6 per MMBTU to the 7 industrial sectors is aligned with the policy set by the Indonesian President Joko Widodo, said Suko Hartono, the President Director of PGN.
Natural gas on it self have a large portion on the cost structure of production in these industries. With this pricing policy change, the government hoped that the effects will be felt immediately increasing the competitive nature of local industries.
"Other than the implementation of tight Covid-19 protocols, the national economic recovery can be strived through this pricing policy with the decision from the Ministry of Energy and Mineral 89K/2020" added Suko in his written statement.
The Minister of Finance Sri Mulyani said that the growth of oil and gas reached 17.4% in September, achieving the recovery, a positive sign to the industrial economic recovery
This is admitted by the Commercial Director of PGN Faris Aziz. From the data, on August 2020, PGN natural gas absorption reach 219 BBTUD (British Thermal Unit Per Day) and in September 2020 the absorption rate increase to 230 BBTUD.
This recovery is evident in the ceramic industry. It is proven by the calculation in the Industry Outlook 2020 that the utilization on production capacity in ceramics increase by 60%, added Faris. Indonesian Ceramic Association (ASAKI) also supported this claim, stating that their projection from July 2020 display the rising of production that will neutralize the effects of the pandemic, returning to normal figures in the Q1 of 2021. This opens the opportunity to export more ceramics, being more competitive than before.
In reality the effects of this price policy is felt by other industry such as farmacy, phytopharmaceutical, protective equipment (APD), mask, rubber gloves, and many other.
Forward, PGN will initiate natural gas availability study, equal access to utilize natural gas study, along with giving a competitive price that will give future benefits for all players.