Minister Of Industry Agus: Government Is Working On RPP Gas For Domestic Needs

JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said that his party proposed a Draft Government Regulation (RPP) regarding Natural Gas for Domestic Needs or Domestic.

The Minister of Industry stated that President Joko Widodo (Jokowi) had approved the existence of the regulation to regulate the smooth needs of gas to support the domestic manufacturing industry.

"I convey that the Ministry of Industry has prepared and proposed to the president and cabinets of a RPP called the RPP Gas for Domestic or Domestic Needs. Thank God, the president yesterday in a limited meeting (Ratas) approved the formation of natural gas RPPs for domestic needs or domestic needs," Agus said in his remarks at the Socialization of Government Regulation Number 20 of 2024 concerning Industrial Region at the Ministry of Industry office which was monitored online, Tuesday, July 9.

Agus explained that the RPP Gas for Domestic Needs or Domestic will basically regulate gas management for industrial interests and energy source interests.

"So, not only for industry but also for the benefit of electricity in Indonesia," he said.

According to Agus, if the policy was made and implemented properly, it would be a game changer for national natural gas management.

"In the RPP, 60 percent of the DMO will be regulated for domestic and 40 percent for export," he said.

Domestic Market Obligation or DMO is the obligation of a Permanent Business Entity or Form to hand over part of oil and natural gas from its parts to the state through the Implementing Agency in the context of providing oil and natural gas to meet domestic needs, the amount of which is regulated in the Cooperation Contract.

Furthermore, the Ministry of Industry predicts that domestic natural gas demand will double in the next six years or to be precise in 2030.

"So, we have an interest in protecting national gas production for the benefit of the manufacturing industry and national electricity interests," he said.