From the Field
Indonesia eyes mandatory domestic gas sales
JAKARTA, January 6, 2020 – The government of Indonesia will present a plan to make the domestic sale of gas compulsory for producers to drive down the price of gas for local manufacturers, Minister of Industry Agus Gumiwang announced on Monday.
Under the planned domestic market obligation, or DMO, local gas producers would need to ensure a portion of their output is sent to local distributors to keep tariffs low.
“We will formulate how big the DMO will be and at what price level, but the point is gas supplied to factories should be priced below USD 6 per million British thermal unit (mmbtu) if possible,” Kartasasmita told local press.
The plan is to be presented to President Joko Widodo on Monday.