Jakarta – Natural gas has great potential to become an important alternative in meeting Indonesia’s energy needs, but adequate infrastructure is a major challenge that must be addressed immediately. This was stated by Fatar Yani Abdurrahman, a leading energy expert, in the latest episode of the PolGovTalks Experts podcast with Hasrul Hanif, a researcher and lecturer at Fisipol UGM.
The discussion covered energy security and sustainability in Indonesia and the strategies needed for a sustainable energy future. Fatar highlighted that although Indonesia has abundant gas supplies, especially in the East Kalimantan region, the current distribution infrastructure is far from adequate. “Better infrastructure is needed for efficient gas distribution across the region,” he said on Friday, July 12.
This lack of infrastructure not only hinders equitable gas distribution but also impacts gas production and exports. According to Fatar, Indonesia’s gas production has decreased by 30 per cent in exports, while 70 per cent of gas is absorbed by domestic industries.
“Improving gas infrastructure requires strong national policies and strategic planning. Government funding (from the state budget) can be used if it generates revenue for the state. Private sector involvement in infrastructure development is also encouraged to reduce costs and increase efficiency,” he added.
Hasrul Hanif, who also participated in the discussion, emphasized that gas is indeed an important alternative for energy sources, but infrastructure issues and high costs are the main obstacles. “There is an investment issue there, there is a cost issue that is still expensive so it is not affordable so far, so we have to think about the future strategy,” he said.
In the context of transitioning to cleaner energy sources to achieve net zero emissions, Fatar explained that gas has an important role in various sectors such as cooking, transportation, and electricity production.
“Gas plays an important role in supporting the green energy transition. Current gas production is still short by 500-600 barrels per day. However, gas can be converted into biofuels, electricity, and hydropower, potentially leading to oversupply in the future,” he explained.
Fatar also emphasized the importance of education and communication to the public in the transition process from oil to gas, as was done in the transition from kerosene to LPG. “People need to be educated about the benefits and availability of gas to ease the transition. This cultural change must be supported by good infrastructure to ensure smooth and equitable distribution,” Fatar concluded.
Through this discussion, it is clear that natural gas has great potential as a major energy source in Indonesia. However, to maximize its potential, infrastructure challenges must be addressed with a well-thought-out strategy and synergy between the government and the private sector. (Hartatik)
