Govt Should Review Energy Prices: Apindo

Translator

Antara

1 June 2020 09:57 WIB

Hariyadi Sukamdani. TEMPO/Candrika Radita Putri

TEMPO.CO, Jakarta - The government should review the prices of industrial fuels, electricity and gas for businesses given the huge impact of the COVID-19 pandemic on the national economy, the Indonesian Employers Association (Apindo) said.

"The high prices of  these commodities are considered very burdensome to the business world, coupled with the weakening of the national economy due to the impact of the COVID-19 pandemic," Apindo Chairman Hariyadi Sukamdani said in a statement in Jakarta on Sunday.
s
According to Hariyadi Sukamdani, the government is expected to reduce the prices of fuel, electricity and gas amid the sluggish Indonesian economic conditions.

In addition, he said, the current pandemic is considered to have reduced the competitiveness of national industries because demand for goods at   domestic and foreign markets has also declined.

"The high price of fuel in Indonesia as the main raw material for industry makes the competitiveness of the national industry low. Moreover, global crude   prices have also declined below US $ 20 per barrel amid the COVID-19 pandemic," he said.

Apindo highlighted the importance of ensuring business continuity amid the current economic downturn due to COVID-19.

He argued that business continuity can be pursued by, among others, reducing the price of industrial fuel as a production efficiency.

Apindo highlighted the premium electricity tariffs that were fully charged to the business world, while a number of industries did not currently operate 100 percent.

Therefore, Apindo proposed elimination of a premium-account fee for minimum electricity usage for 40 hours, including for customers of the 235 hours premium industry that light up during the pandemic.

Apindo also proposed the elimination of the gas minimum bill mechanism by PGN, which would greatly ease the burden on industrial costs.

The industry gained flexibility to pay for energy in accordance with gas consumption that follow usage in the manufacturing process.

In addition, Apindo proposed the deferred payment of 50 percent of electricity bills until December 2020 with a guarantee of installments in the form of demand deposits for 12 months, as well as the elimination of late fees.

Regarding gas, Apindo encouraged the government to immediately cut the price of certain natural gas for all industrial sectors to the tune of US $ 6 / per mmbtu with a US dollar exchange rate equivalent to Rp14,000.

At present, he continued, seven industrial sectors can get the price of 6 dollars / mmbtu, while most industries still pay a price which is much higher than the price.

"The imposition of a gas bill should also be adjusted to industrial consumption rathewr than a valid contract. We also expect the government to waive the minimum cost for gas because the industry is currently experiencing tremendous difficulties during the COVID-19 pandemic," he said.

ANTARA



Energy Ministry Pushes to Raise Local Laborers' Competitiveness against Foreign Workers

2 hari lalu

Energy Ministry Pushes to Raise Local Laborers' Competitiveness against Foreign Workers

Energy Ministry is focusing on increasing the competence of local workers in the energy sector so they can compete with foreign workers.


ESDM Ministry Yet to Lower Pertalite Price as Oil Prices Fluctuates

4 hari lalu

ESDM Ministry Yet to Lower Pertalite Price as Oil Prices Fluctuates

ESDM Ministry explained why the price of RON 90 gasoline or Pertalite has not been lowered even though global oil prices have declined.


Energy Ministry Holds Electric Motorbike Conversion Training for Jakartans

5 hari lalu

Energy Ministry Holds Electric Motorbike Conversion Training for Jakartans

Energy and Mineral Resources (ESDM) Ministry has organized technical training on converting fossil based-motorbikes into electric motorbikes


Indonesia's Electricity Consumption Up 6.15% in 2022

10 hari lalu

Indonesia's Electricity Consumption Up 6.15% in 2022

Energy Ministry official says electricity consumption growth proves that Indonesia's economy thrived in 2022.


Indonesia to Host World Hydropower Congress 2023 in Bali

19 hari lalu

Indonesia to Host World Hydropower Congress 2023 in Bali

Energy and Mineral Resources Minister Arifin Tasrif stated that Indonesia will host the World Hydropower Congress (WHC) 2023 in Bali in the upcoming O


Energy Stocks Suffer Deepest Correction in Thursday's Trade

22 hari lalu

Energy Stocks Suffer Deepest Correction in Thursday's Trade

The energy sector (IDXENERGY) suffered the deepest correction in today's trading sessions, dropping by 1.03 percent.


Layoffs Caused Almost One Million People to Lose Jobs Last Year, Apindo Says

30 hari lalu

Layoffs Caused Almost One Million People to Lose Jobs Last Year, Apindo Says

From January to November last year, 919,071 people lost their jobs due to layoffs, the Indonesian Employers' Association (APINDO) says.


Bid Winner of Central Jabung Oil and Gas Block Linked to House Speaker

36 hari lalu

Bid Winner of Central Jabung Oil and Gas Block Linked to House Speaker

A consortium reportedly linked to House Speaker has been named the direct auction winner over the Central Jabung oil and gas working area.


Jokowi, Vietnam's Nguyen Sign 3 MoUs Including on Energy Cooperation

43 hari lalu

Jokowi, Vietnam's Nguyen Sign 3 MoUs Including on Energy Cooperation

Indonesia's President Joko Jokowi Widodo and Vietnamese President Nguyen Xuan Phuc hold a bilateral meeting today at the Bogor Palace.


Jokowi's Bauxite Export Ban To Strengthen Downstream Industry: Apindo

43 hari lalu

Jokowi's Bauxite Export Ban To Strengthen Downstream Industry: Apindo

Apindo acknowledged the shift towards industrial downstream as the main reason behind Jokowi's bauxite export ban policy.