"This is good news for all of us. President Jokowi has approved the formation of the draft bill on natural gas for domestic needs," the minister informed on Tuesday.
Kartasasmita said that the bill would regulate the release of natural gas for industrial and domestic electrical energy purposes.
According to him, the draft bill would be a game changer in national gas management given the obligation to fulfill a domestic market obligation (DMO) of 60 percent. This would allow the need for natural gas for industry and electricity to be met.
"We believe that the turmoil in gas production for industrial needs and electricity needs will be solved with the regulation," he added.
The regulation would also help realize an inclusive and competitive industrial ecosystem since it will give authority to industrial areas or industrial area consortiums to import gas as raw material for electrical energy sources in their industrial areas, he informed.
"Industrial areas can manage their areas or tenants to supply and distribute natural gas within the area, including through importation," Kartasasmita said.
Earlier, the government decided to continue implementing the policy of keeping certain natural gas prices (HGBT) or cheap gas prices below US$6 per MMBTU (one million British thermal units) for seven industrial groups.
This was conveyed by Coordinating Minister for Economic Affairs Airlangga Hartarto after an internal meeting with President Widodo on Monday to discuss the sustainability of the HGBT policy.
The seven industrial groups are the fertilizer, petrochemical, oleochemical, steel, ceramic, glass, and rubber glove industries.
Regarding the proposal to expand the HGBT program to all industrial sectors, he said it was still being reviewed.
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Translator: Ahmad Muzdaffar F, Resinta Sulistiyandari
Editor: Tia Mutiasari
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