Bahana Securities PGAS climbs down from indutry gas-rationing plan

Following the government’s intervention, Perusahaan Gas Negara (PGAS-BUY-IDR4,225-TP:IDR4,800) has backed down from a plan to reduce the amount of natural gas it allocates to domestic industry and to charge them drastically higher prices if they wanted to buy more than their allotted amount. According to director general of agriculture and chemical industries at the Industry Ministry, Benny Wahyudi, PGAS has secured additional supply from Pertamina, so there won’t be any cuts to the supply for local industry.