"The president in a cabinet meeting has approved in principle the plan by firms to import gas," Reuters quoted Industry Minister Mohamad Suleman Hidayat as saying.

Hidayat added that companies could import gas from Qatar, though he did not provide details.

However, Australian LNG players could still break into the market, with Indonesian state oil company Pertamina in talks with Qatar and Australian producers over LNG imports to fill a 1.5 million tonne per annum shortfall at its planned receiving terminal near Jakarta.

This terminal, which was developed by Pertamina and state gas utility PT Perusahaan Gas Negara, is expected to begin operating in the first quarter of 2012.