Indonesia may limit gas export quota

JAKARTA - The Indonesian government may limit the amount of natural gas shipped to overseas as the domestic demand on the commodity rises, a minister has said.

Rising economic activities had pushed demand on energy that power plants, fertilizer, manufacturing and transportation need more gas.

"The government will be careful [in deciding on the amount of natural gas] for new export contracts. Let's not make it too much because domestic industries also need it," Energy and Mineral Resources Minister Jero Wacik was quoted by the Jakarta Post as saying.

According to Jero, domestic consumers are now able to buy more than 50 percent of the 7,500-8,000 million standard cubic feet per day (MMSCFD) of gas production at economic prices.

The government would also continue to improve infrastructure construction for better domestic gas distribution, he said.

"Gas use will lessen the government's reliance on fuel subsidies," he said.