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Availability of Cheap Gas and Electric, Affecting National Business Convenience

Director General of Chemical Industry, Textile and Miscellaneous (IKTA) Ministry of Industry Achmad Sigit Dwiwahjono say, competitive gas prices for industries located in the industrial area will encourage the development of the region and become an instrument of economic equality.
"It is appropriate orders of President Joko Widodo to improve the ranking of ease of doing business in Indonesia or the ease of doing business be in the range of 40 ratings from 109 ratings at this time," he said at the Ministry of Industry, Jakarta, Thursday (09/22/2016).

To achieve the target, he added, one that must be done is through the provision of electricity and gas. "So in this case, the price of gas has an important role," he added.
Expected, the decline in gas prices followed by efforts to revitalize the industry to increase capacity.
"Gas prices are competitive will be able to encourage companies that currently stop production to move again and restore the industrial capacity production down today," said Sigit.
On the same occasion, the Secretary General of the Association of Indonesian Fertilizer Producers Kodri Dadang Heru said gas cost contribution reached 72 percent of the cost of urea production nationwide, so the price of gas to be very important in the urea fertilizer industry.
"The price of gas for national fertilizer industry is much higher than other countries. Currently the cost of production has been in the range of 250 dollars per ton. If the price below US $ 4 per MMBtu will lower the cost of production of urea by 45 dollars per ton to 205 US dollars per ton, "he said.
According to Dadang, Indonesia as a major agricultural country needs to be supported by the availability and supply of fertilizers were produced so that the existence of a national fertilizer plants need attention and protection from the government.
"Fertilizer industry needs to get a gas price of 2-4 dollars per MMBtu in accordance with the majority of gas prices in the world for the fertilizer industry," he said.

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