BPH Migas to monitor compensation process of 6,600 customers

Palembang, S Kalimantan (ANTARA) – The Downstream Oil and Gas Regulatory Agency (BPH Migas) will ensure that money is returned to the 6,600 Palembang’s gas network customers who have overpaid.

Head of BPH Migas Fanshurullah Asa said in Palembang on Saturday that the manager of the Palembang City-owned gas network (jargas), PT Sarana Pembangunan Palembang Jaya (SP2J), had increased the tariffs imposed by BPH Migas from January 2019.

“It’s okay to raise the tariff, but it must first be reported to BPH Migas. What SP2J has done is in violation of the rules; we have admonished them and require them to compensate customers,” he said.

BPH Migas as an institution authorized to regulate the oil and gas downstream sector. It will oversee this process as stated during a meeting with Mayor of Palembang Harnojoyo some time ago. Previously, a written letter was sent by BPH Migas related to the price hike of jargas (gas network), dated March 15, 2019, with Number 1821/07 / Ka BPH / 2019.

“SP2J has promised to immediately [return the money]. If there are customers who have not [received it], please report it to us (BPH Migas) using the official website of BPH Migas or via direct mail,” he said.

Regarding the mistakes made by PT SP2J, according to Fanshurullah Asa, it can be forgiven because based on an analysis it is known to have been done purely out of ignorance. The management of the company does not understand that while setting the price, it must receive the approval of BPH Migas, considering that BPH Migas uses a certain formula to determine the tariff.

However, he said that the fact that PT SP2J was the only company owned by the regional government (BUMD) that built its own gas network to do business in order to add PAD was also worth considering. In general, cities in Indonesia utilize APBN funds for the construction of gas networks by surrendering their management to SOEs, such as PT Pertagas.

In the future, BPH Migas will further encourage BUMD and the private sector to explore the jargas business sector in accordance with the Presidential Regulation, because it has realized that if they only rely on state budget funds, it will be difficult to achieve the equal distribution of gas.

Meanwhile, PT Palembang Jaya Construction Facility (SP2J), Palembang City Government’s enterprise, which manages gas or jargas networks, had to lower its tariffs starting April 1, 2019, according to the recommendations of the Downstream Oil and Gas Regulatory Agency.

PT SP2J must reduce the rate of class I jargas (gas network), which is Rp2,710 per cubic meter, from Rp.4,750, and Class II rates of Rp.4,750 per cubic meter from Rp7,125.

PT SP2J’s Operations Director Anthoni Rais said the company was forced to raise the tariffs because the price of gas purchased from Pertamina was Rp.4,700 per cubic meter, while gas was sold to the community at Rp2,710 per cubic meter.

The basis for increasing the tariff was to follow the lead of other regions, such as Prabumulih, Ogan Ilir and others, which have already raised their rates.

“Prabumulih has already obtained its price determination from BPH Migas, and we hope BPH Migas will immediately set a new price for Palembang,” he said.

Source: ANTARA News