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Oleo-chemical Industries Needs the Gas Supply Guarantee



Oleo-chemical Industries Needs the Gas Supply Guarantee

InfoSAWIT, JAKARTA – Many kinds of oleo-chemical product usages could help and increase the oleo-chemical industries in Indonesia to fulfill the global and domestic needs. It is proven that the companies get more in the last three seasons, from 16 in 2016 to be 21 in 2019. But the industries need the supports from the government from the regulation, such as, the crude palm oil supporting fund (CSF) and gas price based on the President’s Regulation No. 40/2016 about the Natural Gas Price Decision

Chairman of Asosiasi Produsen Oleo-chemical Indonesia (APOLIN), Rapolo Hutabarat said that the oleo-chemical industries in lndonesia are positive both from the investment, volume, and the export value. In 2017, the export volume of oleo-chemical reached 1,79 million tons within the export values reaching US$ 1,53 billion. In 2018 the export volume of oleo-chemical increased to be 2,76 million tons within the values reaching US$ 2,38  billion.

In 2019, it is predicted that the export would be 3,08 million tons. But the value would be decreasing about US$1,97 billion. “The volume keeps increasing for year but the exports decrease because of the cheap commodity in the world,” Hutabarat said when giving speech in a discussion in Jakarta where InfoSAWIT did attend.

When the commodities get cheaper, the oleo-chemical industries need the supports from the government by providing the gas and the economic price based on the regulation. He explained that the government has published the President’s Regulation No. 40/2016 about the Natural Gas Price Decision. It regulates the natural gas price for some particular industries about US$6 per million british thermal unit (MMBtu). Oleo-chemical is one of the sectors. But the facts showed that the oleo-chemical industries should buy the gas about US$ 8-US$ 10 per MMBtU. “We do hope, there will be guarantee of fas and the certain price as it is regulated,” Hutabarat said. (T2)

 


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