VIVAnews - The Industry Ministry urged the government to halt gas exports to Singapore and other countries like Japan and Korea.
The request is based on PT Perusahaan Gas Negara Tbk (PGN)’s plan to cut 20 percent of gas supplies to the industry as of April 1, 2010.
“We’ll be concerned if gas supplies for the ceramics, food and beverages, steel and paper industries are reduced by 20 percent,” Industry Ministry’s Director for Agro and Chemical Industries, Benny Wahyudi said on Tuesday, March 9.
According to him, the cut will make gas-consuming industries lose their competitiveness, which will lead to bankruptcy.
“If necessary, give up exports to Singapore for the existence of local industries,” he said.
Wahyudi also said the government should do something to stand up for local industries. He thinks there is not any other choice besides stopping or at least limiting gas exports.
“It takes a brave decision from the Minister of Energy and Mineral Resources,” he said.
The government does not even have to worry about receiving international sanctions for unilaterally canceling gas export contract.
“It’s better to be sanctioned rather than causing our industry to collapse and losing their competitiveness and workers,” Wahyudi said.
He also deplores energy policies that prioritize the needs of other countries instead of Indonesia’s.
Premier Oil Natuna BV has signed a gas export contract to Singapore with Sembawang Corporation through ConocoPhilip’s pipes. The contract has been agreed to worth US$ 10-11 per mmbtu for 18 years.
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Translated by: Nataya Ermanti
