Gas Price Cut Could Burden Government: IPA

Annisa ayu artanti    •    03 Desember 2015 11:06 WIB
oil and gas
Gas Price Cut Could Burden Government: IPA
Illustration (Photo: MI)

Metrotvnews.com, Jakarta: Plan to lower gas price is predicted could give burden to government in the long term said Indonesia Petroleum Association (IPA) official.
 
Board of Director of IPA Sammy Hamzah said right now Indonesia is able to buy gas with cheap price. However if the gas price increases in the future, government will be burdened by its own policy.
 
"In recent gas regulation, government controls its price. Government should not expect by lowering gas price the investment climate will be improved," he said in Jakarta, Wednesday (12/2/2015).
 
Sammy predicted gas price cut for industry will have large impact considering oil and gas reserves gradually decrease. Sammy asked government to learn from its fuel price policy.
 
"We have experience with fuel people. If people are used to with cheap gas, sooner or later Indonesia must import gas. Similar with fuel, Indonesia will be net importer and subsidy could be burden for government," he concluded.



(WAH)

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