Indonesia - 05

Indonesia: High Gas Prices in North Sumatra: Structural Causes

On 11 November Johan Brien, the head of the gas buyers’ association in North Sumatra province, sparked a heated media exchange when he complained that gas prices in the province were too high. North Sumatra is an important part of the Indonesian economy: its capital city of Medan is the third-largest city in the country, and one of the most urbanized areas outside of the island of Java. Brien asserted that factories in the province had laid off 20,000 workers because they could not afford the prevailing gas price of $14/mmbtu in the city. Adding fuel to the fire…

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