Ask to Lower Industrial Gas Prices, Jokowi Considered Irrational

TEMPO.CO, Jakarta - Executive Director of ReforMiner, an independent research agency, Komaidi Notonegoro, claims that President Joko Widodo or Jokowi has yet to personally observe the oil and gas upstream sector when the President requested to lower the industrial gas prices.

Komaidi views that the President’s wish was irrational following the current condition of the oil and gas upstream sector. “Jokowi has yet to visit the industry’s upstream sector, the information that was given to him is only partial,” he said on Wednesday, March 29, 2017.

He stated that the plan to drop the industrial gas prices of US$6 per MMBTU is difficult to achieve in Indonesia. Indonesia’s oil and gas upstream sector could not possibly be generalized. “The facilities between the West and East are different, the production of gas is the same but with different costs.”

According to Komaidi, in fact, the costs at the upstream varies. He gave an example of conducting a water well drill when each area has a guaranteed cost difference; the harder the region is to reach, the larger the cost becomes.

Komaidi added that there are pieces of information that Jokowi has not been made aware of. He also states that the president has yet to invite and listen to suggestions from oil and gas upstream sector businessmen.

Jokowi requested for a drop in the price of industrial gas that does not exceed US$6 per MMBTU, which will affect gas prices for a number of industries such as fertilizer, steel, petrochemical, oleochemical, glass, ceramic, and rubber hand gloves.

DIKO OKTARA