ID :
75030
Thu, 08/13/2009 - 08:25
Auther :
Shortlink :
https://www.oananews.org//node/75030
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S SUMATRA BUSINESSES HAIL BAN ON GAS EXPORTS
Palembang, Indonesia, Aug 12 (ANTARA) - Chairman of the S Sumatra chapter of the Indonesian Chamber of Commerce and Industry (Kadin) Ahmad Rizal said he hailed the government ban on gas exports.
The ban will have a positive impact on the industrial development in the country, especially in South Sumatra, as one of the country's biggest gas producers, he said in Palembang Wednesday.
He said while S Sumatra is the biggest gas supplier in the country, and had even been exporting the commodity, the gas needs of the industrial enterprises in the region still had to be satisfied at the same price prevailing in other cities which are no gas suppliers, whereas an industrial gas producer in the province, it should enjoy gas at a lower price.
Rizal said let alone gas cheaper than the national price of the commodity which could be enjoyed, even an application for a gas quota of 10 percent of the national consumption has yet to be granted.
An application of a 10 percent allocation is obviously very reasonable considering that South Sumatra is a gas producer and supplier to scores of industrial centers on Java Island, he said.
He hoped the ban on gas exports would facilitate the creation of a regional gas price, to enable industries in the province to enjoy a lower price.
Rizal said the request for a regional price is only reasonable as transportation cost will be lower than the cost of the channeling of gas to Java Island through a pipeline.
If the price of gas in South Sumatra is lower, he believed that many industries in the province will grow rapidly, as up till now natural gas is still the main fuel and apparently cheaper and safer than any other kind of fuel, he said.
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The ban will have a positive impact on the industrial development in the country, especially in South Sumatra, as one of the country's biggest gas producers, he said in Palembang Wednesday.
He said while S Sumatra is the biggest gas supplier in the country, and had even been exporting the commodity, the gas needs of the industrial enterprises in the region still had to be satisfied at the same price prevailing in other cities which are no gas suppliers, whereas an industrial gas producer in the province, it should enjoy gas at a lower price.
Rizal said let alone gas cheaper than the national price of the commodity which could be enjoyed, even an application for a gas quota of 10 percent of the national consumption has yet to be granted.
An application of a 10 percent allocation is obviously very reasonable considering that South Sumatra is a gas producer and supplier to scores of industrial centers on Java Island, he said.
He hoped the ban on gas exports would facilitate the creation of a regional gas price, to enable industries in the province to enjoy a lower price.
Rizal said the request for a regional price is only reasonable as transportation cost will be lower than the cost of the channeling of gas to Java Island through a pipeline.
If the price of gas in South Sumatra is lower, he believed that many industries in the province will grow rapidly, as up till now natural gas is still the main fuel and apparently cheaper and safer than any other kind of fuel, he said.
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