Indonesia prioritizes domestic gas consumption over export

JAKARTA, Feb. 8 (Xinhua) -- Indonesian President Susilo Bambang Yudhoyono has issued a new presidential regulation on energy policy that prioritizes domestic gas consumption over export sales, a local newspaper reported Wednesday.

The regulation was issued after a Cabinet meeting and was aimed at emphasizing the country's new policy of reducing its dependence on oil-based fuels, The Jakarta Post quoted a minister as saying.

"With the issuance of the regulation, the government will have greater scope to allocate more gas supplies to the domestic market, " said Energy and Mineral Resources Minister Purnomo Yusgiantoro.

As a result of the new policy, he said, Indonesia would no longer prioritize the planned construction of the trans-ASEAN ( Association of Southeast Asian Nations) gas pipeline, at least until such time as it had constructed an integrated gas pipeline network serving the domestic market.

Indonesia's gas reserves of 188.34 trillion standard cubic feet are among the most extensive in the world. It has become one of the biggest liquefied natural gas suppliers to major economies such as Japan.

At present, the country sells 44 percent of its annual gas production domestically.

On Tuesday, President Yudhoyono also issued a presidential instruction for the development of bio-diesel and liquefied coal as alternative energy sources.

Detikcom news website reported that the government has targeted by 2025 to make coal as the largest energy source with 35 percent, trailed by gas with 30 percent, oil 20 percent, and other energy sources 15 percent.