1 st Annual International Interdisciplinary Conference, AIIC 2013, 24-26 April, Azores, Portugal - Proceedings- 565 TARAKAN STRUCTURAL MODEL OF IMPLEMENTATION OF THE PREFERENCE PROGRAM CITY GAS UNDER ANY THEORY OF PLANNED BEHAVIOUR Tubagus Haryono Graduate School of Management and Business, Bogor Agricultural University, Indonesia Ujang Sumarwan, Prof Dr Ir Department of Family and Consumer Sciences and Graduate School of Management and Business, Bogor Agricultural University, Indonesia Asep Saefuddin, Ass Prof Departement of Statistic, Faculty of Mathematics and Natural Sciences, Bogor Agricultural University, Indonesia Abstract: Oil and Gas play very important role in Indonesian Economy as a source of domestic energy, feedstock for national industry and source of government income. Therefore the government of Indonesia through Law No. 22 of 2001 and Presidential Regulation No. 5 of 2006 trying to utilize alternative energy to reduce fuel subsidies including the utilization of natural gas. To support the government's plan, this study need to formulate the strategy of the Gas City development in Indonesia by identifying the factors that influence consumer’s perceptions, attitudes and intentions in using natural gas, which refers to the model proposed by Icek Ajzen (1991) which is known as The Theory of Planned Behaviour. Based on statistic examination toward γ parameter (Gamma) are able to conclude that there is a positive and significant influence from attitude toward behaviour, power of controlling behaviour factor and perceived risk toward the intention to use gas. But the attitude toward behaviour, give the most influence for decision. Trust to control of power factor give a positive and significant influence, and it happened to trust toward perceived risk. But subjective norm toward intention bring a negative influence. In addition to, the demography factor is including a significant factor in forming respondent decision for using natural gas. The respondent in higher economic status, have more independent opinion (attitude toward behaviour, the consequence evaluation, control beliefs, power of control behaviour) to determine using or not using natural gas. The suggestion which come from government and most of user is turn out them to influence using the natural gas. Likewise to the respondent in middle and low economic status but they still also have been thinking about the perceived risk that might be come when using the gas. Key Words: city gas, intention, Theory of Reasoned Action, Theory of Planned behaviour Introduction Indonesian Law No. 22 year 2001 on Oil and Gas, said that the implementation of oil and gas should be able to ensure the efficiency and effectiveness of the availability of oil and gas, both as a source of energy and as industrial raw materials or as a source of state revenue. Further in Presidential Regulation No.5 Year 2006 on National Energy Policy is to be taken step-by-step use of alternative energy as a substitute fuel in order to reduce fuel subsidies, and including the use of natural gas. Based on data sourced from the Directorate General of Oil and Gas, Ministry of Energy and Mineral Resources, in 2011, natural gas production averaged 8.43 BSCFD (Billion Standard Cubic Feet per Day or billion standard cubic feet per day). Of the total production, which is used in the country at 41.2% or BSCFD of 3.47, while those exported by 53% or by 4.47 BSCFD. While the rest of 5.8% or 0.49 BSCFD is loses. Portions export of natural gas are still great, in addition due to the obligation to fulfil contractual commitments that have been signed in the past, also due to the export