The desire of industries to convert the price of gas from the dollar into rupiah is difficult because contracts had been made in the US dollar, Minister for State Enterprise Sofyan Djalil said.
"There is a desire of industries at home to convert the price of gas from the US dollar to the rupiah, but there are technical matters that should be discussed among the government, legislators and the relevant agencies," the minister said during meeting with the minister of industry here on Wednesday
He said that the price of gas was felt too burdensome to economic players in view of the conflicts of interest among industries, state oil and gas company Pertamina and gas traders.
As a result, economic players which directly need natural gas raw materials had to suffer from the big impact, he said.
However, all the problems could be solved if all sides are willing to sit together to discuss alternatives that would seerve the national interest.
He said that gas purchases had always been made under contracts in the US dollar in view of the political bargainings involved, so that it would have a significant effect if industries which needed gas were to be revitalized.
After all, industries which were bound under contracts in the US dollar would feel the impact if at certain times the value of the greenback against the rupiah increased, the minister said.
On the request of a number of industries for reduced gas price, the minister said that the matter could be discussed with the finance minister.
"In the current situation, changes can be made in all things including the price of gas as long as there is a positive response from all parties, but free of political interests," he said.
During the meeting, a number of factory associations such as the Indonesian Fertilizers Business Association, Indonesian Ceramic Multifarious Industry, Glove and Rubber Industry Association and Cattle Fodder Association, needed a new policy on gas and secured gas supply at home.
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