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Indonesia govt cuts gas price sold to Sei Mangke economic zone

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JAKARTA ( – The Indonesian government has agreed to cut the price of natural gas sold consumers in the Sei Mangke Special Economic Zone, North Sumatera beginning from 2021. The move is expected to stimulate investors to invest in the economic zone.

Director for Oil and Gas at the Energy and Mineral Resources Ministry Djoko Siswwanto said the gas will be sold at tag price of US$10 per mmbtu, lower from US$10.48 mmbtu at present.

The decision was made during a coordinating meeting led by the Coordinating Minister for the Economy Darmin Nasution. The current price will remain applicable until next year in line with the contract.

Industrial consumers have long complained and sought government help to push gas producers to reduce the gas sale price to domestic consumers in line with the reduction of international gas price.

Meanwhile, gas producers have argued that the gas price has taken into account the production costs and the market price. (*)

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