Index

 01 March 2006

 
Government wants more use of gas
Jakarta Post

President Susilo Bambang Yudhoyono has issued a new presidential regulation on energy policy that prioritizes domestic gas consumption over export sales, says a minister.

Energy and Mineral Resources Minister Purnomo Yusgiantoro said Tuesday the regulation was issued after a Cabinet meeting and was aimed at emphasizing the country's new policy of reducing its dependence on oil-based fuels.

"With the issuance of the regulation, the government will have greater scope to allocate more gas supplies to the domestic market," said Purnomo during a press conference after the meeting.

He gave no further details.

As a result of the new policy, he said that Indonesia would no longer prioritize the planned construction of the trans-ASEAN (Association of Southeast Asian Nations) gas pipeline, at least until such time as it had constructed an integrated gas pipeline network serving the domestic market.

Indonesia's gas reserves of 188.34 trillion standard cubic feet are among the most extensive in the world. It has become one of the biggest liquefied natural gas suppliers to major economies such as Japan.

At present, the country sells 44 percent of its annual gas production domestically.

Elsewhere, President Yudhoyono also issued a presidential instruction Tuesday for the development of biodiesel and liquefied coal as alternative energy sources.