Japan urges Indonesia to guarantee supply of liquefied gas under EPA
Japan Urges Indonesia to Guarantee Supply of Liquefied Gas
Wednesday, 29 November, 2006
TEMPO Interactive, Jakarta: The Japanese government urged that guarantee for supplying Indonesia’s liquefied natural gas (LNG) to Japan be attached to the economic partnership agreement (EPA) between both countries.
However, the Indonesian government has not complied with this request.
Halida Miljani, a Member of the Expert Staff of the Trade Minister who is also a member of the Indonesia-Japan EPA negotiating team, has said that the section on energy and mineral resources in the EPA agreement shows that Japan had earlier asked for a guarantee that Indonesia would not reduce LNG exports.
“However, it was difficult since Indonesian resources are decreasing gradually. Therefore, we need flexibility for the government to meet domestic demand first,” she said yesterday (11/28).
The unfulfilled request, Halida went on to say, occurred since the government was concerned about first meeting domestic gas needs.
The government would be in a difficult situation if it could not guarantee the stability and continuity of supply.
However, it was agreed that the request for a supply guarantee, according to Halida, would be discussed bilaterally in the future.
Indonesia, said Halida, has also stated that it would still have be committed to the existing oil and gas contracts of both countries.
Meanwhile, President Susilo Bambang Yudhoyono and Japan Prime Minister Shinzo Abe yesterday (11/28) at Tokyo agreed to realize the setting up of a free trade treaty for both countries.
Both state leaders agreed to prepare the trade partnership contract.
As the first stage of the agreement, Indonesia will send its workers, especially nurses, to Japan.
Conversely, Japan urged that Indonesia guarantees gas supplies and put pressure on North Korea as well to stop its nuclear program.
RR ARIYANI | AP
