Govt urged to issue incentive for gas development
Saturday, February 5 2000 - 04:00 AM WIB
The government should immediately provide incentive to allow an optimum utilization of the country's huge natural gas reserves, according to president of the state-owned gas distribution firm PT Perum Gas Negara (PGN) A. Qoyum Tjandranegara.
He said Friday that the measure would be much more cheaper than providing huge fuel subsidy which would only accelerate the depletion of the country's already limited oil reserves.
He said that with the current rate use of oil reserves, Indonesia is expected to become a net oil importer in 15 years from now.
"For that reason gas is the best alternative energy to substitute oil," Qoyum said, adding that the increase in the use of gas would reduce the government overall fuel subsidy.
But he said that huge investment was needed to develop the necessary infrastructure including pipeline to reach an optimum use of the country's natural gas.
He said that World Bank or Asian Development Funding was needed because their cheaper compared to commercial loans.(*)