RI to suffer gas supply deficit: Minister

Minister of Industry Fahmi Idris warned that Indonesia will suffer gas supply deficit, which will disrupt industrial and investment growth in the country, Republika reported Tuesday.

"As long as efforts have yet to be made to find new gas wells and fields, we will suffer gas deficit," said Fahmi in Jakarta Monday when asked to comment on the certainty regarding gas supply for the nation's industry following the completion of gas balance calculation scheme.

According to Fahmi, the lack of gas supply will affect all kinds of industry that utilizes gas as a fuel, which are mostly situated in Java Island.

The gas deficit will disrupt the country's industrial growth and new investment plan, especially new investment in industrial areas that use gas as fuel.

"This is a tragic situation. While intensive efforts to attract new investment are underway, we will run out of gas, which in the long-term will disrupt industrial and investment growth in Indonesia," he said.

Under the master plan for natural gas for industry launched in May 2006, Indonesia suffered gas supply deficit of 1,362.6 million cubic per day (mmscfd) in 2005. The deficit is expected to increase to 1,601.9 mmscfd in 2010 and to 5,281 mmscfd in 2015.

"Therefore, a solution to the problem (gas supply deficit) is by making massive and intensive efforts to seek new gas wells and fields," he suggested.

Responding to the possibility of importing gas as a solution to the problem, the minister said that it is difficult to import gas considering that the gas price at international market is high at between US$7 and $8 per one million British thermal unit (mmbtu), while the price that the government can afford is $4 per mmbtu.

According to Fahmi, boosting gas production at home is the most strategic way to solve the gas supply deficit problem. (*)