REPUBLIKA.CO.ID, JAKARTA -- Upstream industry, especially petrochemicals asked government and state owned oil and gas company, Pertamina to guarantee gas supplies. Secretary General of the Indonesian Olefin, Aromatic and Plastic Industry Association (Inaplas), Fajar Boediono said that gas supply that was not maintained would disrupt the production of petrochemical industry.

"We asked government to guarantee the supply this year. Gas is our major source of energy," Boediono said recently as reported by EH Ismail.

Gas supply will greatly assist upstream industry, which is currently under pressure due to fluctuation of exchange rate and rising labor cost. Gas component in petrochemical industry reached 15 percent in production process, so it played an important role, while Pertamina could supply 30 percent only.

Gas supply difficulties also occurred in steel industry. Executive Director of Indonesian Iron and Steel Industry Assocation ((IISIA), Hidayat Trisepoetro said that this condition was influenced by world economic condition that had yet to recover fully. In fact, steel industry has to adjust its expenditures related to government policy to increase the minimum wage tariff.

Trisepoetro explained that association did not want to predict world economic recovery. Domestic steel industry could only survive in order not to experience more losses. Steel industry has close ties to the value of Rupiah against USD and the price of steel in the world.

Chairman of Indonesian Employers Association (Apindo), Sofjan Wanandi asked government to provide intensive support to national industry. Many factors are beyond of industry's ability to increase production costs, such as exchange rate fluctuation, the increase in electricity tariff, the price of raw materials, including gas, as well as implementation of new minimum wage.

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