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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.
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