Jakarta – The government is considering stopping natural gas exports in response to the increasing demand for domestic gas in the energy transition era. Minister of Energy and Mineral Resources (MEMR) Bahlil Lahadalia said on Monday, January 20, that this step aims to ensure the availability of energy and raw materials for the domestic industrial and downstream sectors.
“We must prioritise domestic gas needs, especially in the face of surging demand in the coming years. If domestic needs are not met, we will not hesitate to stop exports temporarily,” Bahlil said in a press statement while attending the inauguration of a strategic electricity project at Jatigede Hydroelectric Power Plant, Sumedang.
According to government projections, domestic gas consumption will increase significantly in the next few years. From 2025 to 2030, gas demand is estimated to reach 1,471 BBTUD, which continues to rise until it reaches 2,659 BBTUD in 2034.
“This increase is driven by industrialisation and downstreaming, which are the government’s priorities to boost economic growth. Thus, natural gas is a key component in supporting energy transition and national industrial transformation,” Bahlil explained.
Old gas export contracts a challenge
Around 40 per cent of Indonesia’s total gas production is still exported abroad. Most of these exports come from old contracts involving two major plants, namely Badak LNG in East Kalimantan and Tangguh LNG in Papua, as well as gas exports to Singapore from the Corridor Block.
“These exports are indeed from long-term deals signed years ago. However, with evolving conditions, we have to adjust our policy to prioritise domestic needs,” he added.
Despite considering halting exports, Bahlil emphasised that the decision would be made flexibly. If domestic needs are met, the government will still open the opportunity to continue gas exports.
“It’s not about closing the export door forever. We will look at the balance. If domestic needs are met, of course, we will return to exporting. However, as long as domestic needs are not yet secure, we ask for understanding from international partners,” Bahlil said.
According to Bahlil, this step is part of the government’s grand strategy for achieving energy independence. By prioritising domestic gas use, Indonesia is expected to reduce its dependence on imported energy and strengthen its position as an energy-independent country.
The government is currently reviewing additional measures to ensure the sustainability of the gas supply, including accelerating exploration and optimising existing gas infrastructure.
“We want Indonesia to not only become a big player in energy but also ensure that the people and domestic industries benefit maximally from our resources,” Bahlil concluded. (Hartatik)
