REPUBLIKA.CO.ID, JAKARTA - Indonesian industrial sector urges the government to allocate 100 percent of gas production for domestic need. Currently, the supply of domestic gas was from the remaining of export, the Chairman of Indonesian Employers Association (Apindo), Sofjan Wanandi, said.
"Government must prioritize domestic need," he said on Wednesday. Government seems to put foreign interest at the first place.
Disorganized coordination between stakeholders, such as Ministry of Energy and Mineral Resources, upstream oil and gas regulator BPMigas, Pertamina, and State Gas Company (PGN), makes it worse. He said that the price kept rising while the supply was hampered.
Meanwhile, Director General of Industrial Manufacturing at the Ministry of Industry, Panggah Susanto, admitted that guarantee for gas supply could not be assured.
Earlier Ministry of Energy and Natural Resources pledged to allocate most of the gas for industry. The data in BPMigas says the allocation of gas in 2011 was 17 percent out of a total domestic supply, which was 44 percent. Gas supply for industry is equal to 1,260.73 million mmscfd. "Industry actually gets the biggest supply," Vice Minister of Energy and Mineral Resources said.