Indonesia's Gas Demand May Grow by More Than 10%

Indonesia's natural gas demand is expected to rise from the current 10 percent per year as the country plans to lower its oil usage in order to reduce subsidies.

As part of the measures aimed at curbing fuel subsidies, Indonesia may slap a nationwide ban on the use of subsidized fuel by the country's 11 million private cars, Reuters said in a report.

"We're a few weeks away from the Indonesian government's announcement to remove subsidy for high-speed diesel used in industries," Hendi Prio Santoso, president director and chief executive officer of PT Perusahaan Gas Negara (PGN) said at the KPMG energy conference, Reuters reported. 

The country currently consumes about 40 billion cubic metes of gas and demand is growing by at least 10 percent annually, Santoso told Reuters on Thursday. 

Natural gas accounts for about 20 percent of Indonesia's energy mix, while coal has a 50 percent share and oil about 30 percent, Reuters quoted him as saying.