Natural gas as leading export commodity face challenges as transition energy

Jakarta – The government’s decision to make natural gas an export commodity as transition energy from fossil fuels to new and renewable energy (NRE), poses a tough challenge, business representatives said Wednesday (24/8).

“Indonesia has enormous natural gas potential, so we believe that it can support the energy transition process while still meeting national energy needs. However, there are a lot of issues that must be addressed first, so that existing natural gas potential can be produced and utilised optimally,” explained the Executive Director of the Indonesian Petroleum Association (IPA), Marjolijn Wajong in an online discussion.

Deputy Chairperson of the Indonesian Natural Gas Users Forum (FPGBI), Achmad Widjaja at the same event said that while natural gas is a very important raw material to drive the industry, the majority of natural gas is still intended to meet export needs. As a result, the domestic demand for natural gas for the national industry has not been optimally met.

He said certain natural gas price policies have not had a significant impact. “There has been no innovation, increased competitiveness, and the creation of a multiplier effect as expected, according to Ministerial Decree 134/2021,” said Widjaja, adding that the role of natural gas should not be replaced because apart from being a raw material or commodity, natural gas is also the most efficient source of energy.

Executive Director of the ReforMiner Institute, Komaidi Notonegoro, said that the use of natural gas as a bridge to the national energy transition is very strategic. This refers to the last few years where the discovery of national oil and gas reserves is dominated by natural gas. “It should be remembered that the upstream oil and gas sector has a large multiplier effect, so the added value generated is quite large and significant for the national economy,” he said. (Hartatik)


Banner photo: PT Pertamina Hulu Energi (PHE), as Pertamina’s Subholding Upstream, through PT Pertamina Hulu Energi Offshore North West Java (PHE ONW) managed to find oil and gas reserves from drilling the GQX-1 exploration well in North Java waters. (Source: Pertamina)

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