RGas company accused of extortion

RGas company accused of extortion

The Jakarta Post, Jakarta

Some Jakarta residents have complained about difficulties in buying gas from state-owned gas distribution company PT PGN, saying the company's officials forced them to pay illegal charges to become customers.

A resident, who wished to remain anonymous, said he and about 100 residents of Klender area, East Jakarta had applied over a year ago for connection to PGN's gas network, but PGN had not responded. Normally, they said, it took only about two to three months to process the application.

"PGN' gas pipes actually pass a few meters in front of our houses, but none of us have been connected to the line.

"PGN has imposed a strange procedure for us to get connection. Its officials, refusing to reveal the connection costs, asked each of us to pay between Rp 1.7 million and Rp 2.5 million so that our applications can be processed in one month," he told The Jakarta Post.

When asked why the cost was so high, the official replied that household customers were not important for PGN and were only a burden to the firm, according to the resident.

Households account for only 3 percent of PGN's customers with industries and businesses being the largest customer group, accounting for 97 percent, according to PGN' data.

The residents suspect that PGN has given its workers cooperative the sole right to install gas pipes for its customers. The cooperative then forces potential customers to pay an exorbitant amount of money for its service.

Another resident said such poor service was really deplorable given the fact that the government was now promoting the use of gas as an alternative clean energy in a bid to cut the country's use of oil-based fuels.

"PGN should not only pay attention to industrial and business customers, but households who also need cheap and clean energy," he said.

When asked to comment, a PGN spokesman at the company's headquarters told The Post to talk with officials at the company's Jakarta branch office.

However, when contacted, a spokesman of the PGN Jakarta office asked The Post to talk with officials at its Klender branch. Officials at the Klender office however claimed they were not authorized to talk to the press, telling The Post to talk to the Jakarta office.