TEMPO.CO, Jakarta - Energy Minister Ignasius Jonan said that the increased gas selling price from ConocoPhillips Indonesia (IDX: COPI) to PGN Batam will boost state revenues.
"In addition to maintaining fairness in the upstream and midstream sectors, ConocoPhillips gas price adjustment for PGN will increase state income, which is a positive thing," Jonan said in Jakarta last night, August 23.
Read: PGN Obtains 37bn BTU Gas from ConocoPhillips
Jonan released a decree signed on July 31 allowing COPI to raise its gas price from US$2.6 to US$3.5 per MMBTU for 22.73 BBTUD.
With that price, he said, the state will get an additional US$4.3 million from the companies' July-November 2017 contract.
Meanwhile, PGN will still sell gas to consumers at current prices. This, Jonan said, is to show the government's consistency in providing affordable energy to the people.
"The price change is only for the supply side—from ConocoPhillips (COPI) South Sumatra to PGN Batam. Consumer prices will not change. This is the important thing: to keep prices for end-users like industries and power plants the same, so that we can push the local and national economy".
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