Govt studies the possibility of reducing gas exports

Minister of Energy and Mineral Resources Purnomo Yusgiantoro has acknowledged that the government is studying the possibility of reducing gas exports to support the new energy policy which requires industries to use gas and coal in their operating activities.

Purnomo said that the government was seeking inputs from the private sector and experts on the possibility of halting the gas exports. "Some parties have asked the government to stop gas exports and use it for domestic consumption," he said.

However, the minister said that halting the gas exports would also seriously affect the state budget, which at present still relies partly on revenues from oil and gas exports. State revenues from gas exports, for example, reached Rp 110 trillion last year.

Indonesia which at present operates two LNG plants, one in Aceh and another one in Bontang, East Kalimantan, is among the largest LNG exporters in the world. New LNG pant is now under construction in Papua to further increase the LNG exports.

In addition to LNG, Indonesia also exports natural gas to Singapore and Malaysia.

Purnomo said that stopping the gas exports would not be easy because it should be supported by a regulation. "The plan to stop the gas exports should for example be stipulated in the draft of the new energy law which is now being deliberated by the House of Representatives," he added. (dino)