INDUSTRY.co.id - Jakarta, Federation of Indonesian Chemical Industries (FIKI) asked the government to immediately implement Presidential Regulation No. 40 of 2016. The reason is, until now the national chemical industry competitiveness is increasingly eroded.

In addition, FIKI also asked the government to intervene in determining the price of natural gas. If the price is left to the market mechanism, the national industry will be increasingly difficult to compete with neighboring countries in the global market.

"The government must be concrete to support and support the industry," said Fahmi Executive Director Suhat Miyarso at Sari Pan Pacific Hotel, Jakarta (21/2/2018).

Suhat acknowledged, the utilization of natural gas as a raw material of the chemical industry is very important. Similarly, the role of natural gas as energy in the fertilizer industry, petrochemicals, ceramics, glass, cement, metal, glass ware, and rubber gloves.

Suhat asks the government to seriously implement Law No. 3 of 2014 on Industry, and Presidential Regulation No. 40 of 2016 if it wants to improve industrial competitiveness.

Until now, he added, the new fertilizer and steel industries that get gas price of US $ 6 per MMBTU according to President Decree 40/2016. While other industries, such as petrochemicals, cement, ceramics, glass, glassware, metals and rubber gloves are still buying natural gas at varying prices, between US $ 9-10 per MMBTU.

"The price is still high, the national industry is difficult to compete with similar industries from Malaysia, Singapore and Thailand. The industry in the country get a gas price of about 4 to 5 US dollars," he complained.

Meanwhile, Director General of Chemical, Textile and Multifarious Industries (IKTA) of the Ministry of Industry, Achmad Sigit Dwiwahjono, said the gas price of US $ 6 per MMBTU is currently only for certain industries.

However, he added, the current price varies. In Central Java and East Java it can reach 7-8 dollars per MMBTU, while in Sumatra, around 9-12 US dollars per MMBTU.

Sigit said, according to President Decree 40/2016 gas price in wellhead only US $ 6 per MMBTU. While in plain gate, not more than US $ 6 plus 1 or US $ 1.5 per MMBTU.

Sigit said, the relevant ministry continues to make efficient gas prices, from upstream, downstream, to industrial sector. In the upstream, there are already selling US $ 2-4 per MMBTU. The ESDM Ministry has also prepared regulations to make the price more affordable.

He expects gas prices to fall this year. Otherwise, the local industry will lose momentum. In addition, the gas absorbing industry has a strong competitiveness in the global market.