Kedaung Might Halt Production
www.mediaindo.co.id, 2005-07-28
PT Kedaung Indah Can Tbk, a home appliance company, is on the verge of halting its production due temporary gas supply termination by the state gas company, Perusahaan Gas Negara. The gas supply was temporary terminated because the government has implemented a policy that limited gas usage. PGN also terminated its supply to Kedaung because gas supplies from Kodeco, Lapindo, Brantas and EMP Kangean have decreased. PGN suggested that companies decrease the average gas usage by 35%, which resulted in Kedaung decreasing its gas usage from 4 furnaces (with 3 shifts) to 2 furnaces (with 1 shift). Hence, Kedaung would only produce 16% of its maximum capacity. On 29 July 2005, PGN increased gas usage limitation to only 60%, which may terminate Kedaung’s production permanently.