Indonesia can not ensure its gas supply to Japan beyond its current contract that will end in 2010, due to shortages of production and high domestic demand, said an Indonesian negotiator on Tuesday who just came back from the official meeting of the Economic Partnership Agreement (EPA) between Japan and Indonesia.
Negotiator Halida Miljani, who has just returned from the two- day meeting ended on Friday last week in Japan, said that Indonesia could not be bound into a clause at the EPA which request Indonesia to sustain the stability and continuity of gas supply to Japan in the future.
But, she said Indonesia will be fully committed to the current contract to supply gas to Japan.
"Japan wants a commitment of Indonesia to guarantee the security of the energy supply to the country, in this case it is difficult for Indonesia to approve it," said Miljani, who is also a special staff of the International Trade of the Indonesian Trade Ministry.
Indonesian Vice President Jusuf Kalla has said Indonesia will decide whether to continue the gas contract with Japan next year after making a calculation on the domestic demand and production of gas within the next ten years.
"We also have the problem of short of supply, sometimes to meet the domestic consumption is also difficult," said the negotiator.
Regarding to the possibility of continuing the contract, she said that it would be separately and bilaterally discussed.
The negotiator said that it is also difficult for Indonesia to meet the request of Japan to supply the gas to the country in as many as the volume on the current contract.
Indonesian President Susilo Bambang Yudhoyono, who has been in Japan since Sunday, is expected to discuss the issue during the visit and will sign a number of agreements before heading to Russia on Wednesday.
Japan relies on Indonesia, the world's top LNG exporter, for 27. 6 percent of its natural gas imports.
Source: Xinhua