Local industries will be obliged to use coal and gas as source of energy

Within the next three and five years, Indonesian industries will be prohibited from using oil as source of fuel energy, but they will be instead obliged to use coal and gas as part of the government?s new energy policy, Investor Daily reported on Friday.

The plan to require local industries to use coal and gas was discussed during a limited Cabinet meeting on Tuesday, which was led by President Susilo Bambang Yudhoyono.

? The limitation in the use of oil will be part of the government?s new energy policy which is now being formulated by the ministry of industry,? Coordinating Minister of Economy Aburizal Bakrie told reporters following the Cabinet meeting.

As part of the program, the existing industries which use oil in their production activities should shift their energy use to coal and gas in stages, Aburizal said, adding that the program would be introduced to enable Indonesia to optimalize the use of its massive coal and gas reserves.

?Indonesia has gas reserves of 188 trillion cubic, while the coal reserves can last for at least 100 years,? he said. ?The use of coal and gas will automatically reduce the dependence on oil,? he added.(*)