Policy & Regulation

New Indonesian price regulations could reduce risks for gas distributors – Fitch

Indonesia’s new regulations for setting gas prices and awarding transmission rights could reduce risks for gas distributors, Fitch Ratings has said.
By Staff reporter 27 February 2018 0 29765

Indonesia’s new regulations for setting gas prices and awarding transmission and distribution rights could reduce risks for gas distributors if implemented well, Fitch Ratings said on Tuesday.

The agency said the new rules are designed to ensure consumer prices remain relatively low, but it is still uncertain whether they will provide reasonable returns to gas distributors because the regulator has yet to announce the rate of return and the fees that will be used, as well as the frequency of adjustments.

The regulations specify only...