Indonesian Vice President Jusuf Kalla said in Jakarta Friday that Indonesia will decide whether to continue gas contract with Japan, which will expire in 2009, next year.

The vice president said the government would make a calculation based on the domestic demand and production of gas within the next ten years.

"We will determine next year after we will have made a balance sheet of the demand and production of gas in the next ten years," he told a press conference at his office here.

"Then we will see whether to continue (the contract)," said Kalla.

He said that currently the domestic demand for gas has been on the rise, but the country has also expected to get more supply from the blocks of Natuna off West Kalimantan province, Cepu in Central Java province and a field in Makassar of South Sulawesi province, which all will begin production before 2012.

Indonesia gas supply has decreased due to the aging of wells.

"We have new wells that will produce before 2012," he said.

Besides, the vice president said that the government will decrease the domestic demand of the gas by decreasing the use of gas in the sector of electricity, shifting it with coal, which is cheaper in price.

Indonesia plans to use coal for generating power plant up to 30 percent, President Director of the Stated-Owned electricity company Perusahaan Listrik Negara Edie Widiono has said.

"We are now use the technology approach which is more efficient to Indonesia, where gas mostly used for electricity. We will replace it with coal," said Kalla.

President Susilo Bambang Yudhoyono will discuss the issue during his upcoming visit to Japan at the end of this month, said the vice president, but it will not in detail, he added.

Japan relies on Indonesia, the world's top LNG exporter, for 27. 6 percent of its natural gas imports.

Source: Xinhua