N Sumatra Businessmen Opposed To Planned Gas Price Hike

Medan, N Sumatra, July 17 (Antara) - North Sumatra businessmen are opposed to the Upstream Oil and Gas Special Task Force (SKK Migas)`s plan to raise gas price by up to 40 percent, a spokesman said. "Of course, we reject it. How can they raise the price while gas supplies are not there. What is it (the increase) based on?" Chief of the North Sumatra Gas Users Association (Apigas) Johan Brien said here on Wednesday. What is more, the current gas price is almost twice as much as that of Malaysia, he said. "If the price is to be raised again companies in North Sumatra will find it more difficult to compete with their rivals in Malaysia and other countries," he said. Given the difficult gas supplies, 52 Apigas members are under a threat of bankruptcy. Even one of Apigas members, PT.Ecogreen Oleochemical, has stopped its business since July 11, he said. "There must be a policy that safeguard industries because it will have a large impact not only on workers but also on foreign exchange earnings," he said. The North Sumatra chapter of the Indonesian Chamber of Commerce and Industry (Kadin) also rejects the planned gas price hike. "The condition of companies in North Sumatra is no longer conducive given electricity and gas crisis amidst the global economic meltdown. Don`t jeopardize the condition by raising the gas price," he said.