Senin 30 Nov 2015 14:35 WIB

Minister: Gas prices can be reduced by 30 percent

Rep: C09/ Red: Julkifli Marbun
Sudirman Said
Foto: Republika/Agung Supriyanto
Sudirman Said

REPUBLIKA.CO.ID, JAKARTA -- Minister of Energy and Mineral Resources, Sudirman Said, said that prices of natural gas could be reduced by 30 percent.

"The government will continue to fix management of gas, to make it more conducive to the industry. We will encourage gas prices to be reduced by 30 percent," he said, in a press conference after chairing a meeting of leadership of Ministry of Energy and Mineral Resources, in Jakarta, Sunday (29/11).

According to him, in addition to trigger growth in the downstream sector, the decline in gas prices was believed to invite new investments both downstream and upstream of oil and gas sector.

From the upstream side, he added, the decline in gas prices was done by reducing the portion of government revenue. While, on the "midstream" and distribution, the price reduction would be done by applying a "regulated margin," so that the cost of transmission and distribution can be applied fairly.

"The establishment of a national gas agency will ensure provision and decrease in gas prices with a more simple system," he added.

Related to that, Sudirman appreciated the idea of ​​integration between PT PGN Tbk and PT Pertagas, a subsidiary of PT Pertamina, which would largely affect efficiency of gas business.

"Investing in infrastructure will be more efficient. The 'open access' to gas pipeline may also be enforced immediately," he explained.

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