Investment in gas sector won't increase

Investments in domestic gas sector would continue to be low if the government doesn't introduce new regulations particularly that would promote the use of gas in the country, according to the Indonesian Gas Association.

"Investment prospects in the gas sector will remain unpromising in the next five years unless new regulations on the utilization of gas are introduced," said association chairman John S. Karamoy.

John, who's also president of local publicly listed oil and gas firm PT Medco Energy, also expressed disappointment over the lack of government long-term strategy in developing the country's rich natural gas resources.

He said that the poor strategy had caused the price of domestic gas to be more expensive than that produced by the Middle East companies.

He pointed out that in the Middle East countries the price of gas per MMBTU on average stands at 25-30 U.S. cents, while in Indonesia it exceeded one U.S. dollar. (*)