Publications

Indonesia’s national gas resources are sufficient for the next few decades and are believed to play a role as a transitional energy towards an era of clean energy (new and renewable). Until November 2022 the total distribution of natural gas reached 5 444.80 BBTUD of which 68% was utilized to meet domestic demand. Industry became the highest natural gas consumer with the consumption of 1 610.70 BBTUD followed by fertilizer of 691.61 BBTUD and electricity of 619.30 BBTUD. The total export of natural gas (pipeline gas and LNG) is 1 759 BBTUD. As natural gas will continue to grow the Government is pursuing the production from the existing fields development of conventional and unconventional fields as well as production increase through workovers and Enhanced Gas Recovery (EGR). From demand side the usage of gas will be maximized through industrial downstreaming strategies fuel switching from oil derivatives to gas development of transmission gas pipeline interconnectivity and also gas virtual pipeline cluster. Indonesia needs to create new opportunities by developing oil and gas-related industries such as petrochemical industries that can absorb the abundant resources of gas from across the country. The concept of upstream oil and gas in Indonesia is integrating the upstream and downstream strategy. This means that each upstream field development should be integrated with downstream industries by taking into account the future consumer who will take the gas as energy or as the feed stock. In order to optimize national gas utilization, it is necessary to increase industrial capacity and the added value. This will require accelerating the downstreaming program through an import substitution policy to spur the contribution of the domestic industry in utilizing gas as raw material to produce finished products that are consumed by the public. Through downstreaming of natural gas the domestic industry is developing and economic growth is increasing. The concept of downstream industry development includes: Development of demand that is close to the potential supply of natural gas and natural gas infrastructure following the principle of local distribution for energy and raw materials so as to increase efficiency and added value as well as the multiplier effect of the national economy. Sustainable Infrastructure development to support the distribution of domestic natural gas in accordance with the demand including the conversion program of diesel generators to gas as well as the construction of the Cirebon-Semarang transmission pipeline and the Sei Mangkei-Dumai section.