Textile entrepreneurs object to the plan to increase the price of non-price certain natural gas (HGBT) industrial gas by PT Perusahaan Gas Negara Tbk (PGAS) or PGN as of Sunday, October 1, 2023. Chairman of the Indonesian Textile Association (API), Jemmy Kartiwa, believes that the momentum for the plan to increase natural gas prices for non-HGBT industries is inappropriate. This is because the performance of the domestic textile industry is considered not good. He explained that the textile industry was experiencing a decline in utilization, and bank interest rates for the textile industry, which were considered to be still high, were around 12 percent.
"Then, the selling price of the products is also low and we have to compete with imported products. Many of our members have complained about this policy," Jemmy explained, reported by Media Indonesia, Monday, August 28, 2023.
He revealed that a number of API members had met and raised their objections to the government's policy of increasing natural gas prices. However, he said, still have not found a bright spot.
"Our members have met and the information has not received any response. They are basically asking for support so that the plan to increase gas prices will not be carried out," he said.
PGN gas commercialization factor
In the attachment letter written by PGN, it is stated that the commercialization of PGN's gas to customers is greatly influenced by several factors, namely the source of gas supply and/or the price of gas supply, also considering the volume contribution of each gas supply.
Adjustments made by gas suppliers to PGN have an impact on gas price adjustments imposed by PGN on customers.
The price increase for non-HGBT gas consists of several categories. For gold customers, the original gas price was USD 9.16 per million British thermal unit (mmbtu) to USD 11.89 per mmbtu.
Then, the gas price for silver customers is set at USD 11.99 per mmbtu, up from the previous USD 9.78 per mmbtu.
Meanwhile, bronze 3 customers were also subject to an increase in natural gas prices to USD 12.31 per mmbtu, a jump from the gas price of USD 9.16 per mmbtu.
Then, bronze 2 customers are pegged at USD 12.52 per MMBTU, up from the previous USD 9.20 per mmbtu. The final customer category, namely bronze 1, is subject to a gas price of IDR 10,000 per cubic meter, an increase from the previous price of IDR 6,000 per cubic meter.
