Jakarta – Observers have seen gas supply shortages in some regions in recent months as evidence of weak governance in Indonesia’s gas sector. Executive Director of the ReforMiner Institute, Komaidi Notonegoro, believes that this situation has arisen because Indonesia does not yet have a special agency mandated to consolidate gas supplies and ensure availability in the domestic market.
Although the national balance sheet shows a surplus, in reality, several regions are experiencing a supply deficit. According to Komaidi on Tuesday, August 19, the government needs to establish a national gas aggregator, similar to the model implemented in Malaysia and Thailand. “The function of a gas aggregator is basically like Bulog in the food sector; it has an important position to protect the interests of producers and consumers,” said Komaidi.
In August 2025, Central Sumatra, South Sumatra, and West Java will face a supply shortage of around 130.90 BBTUD. Without additional supplies, observers predict that this situation will continue until December 2025, with a total shortage of 566.70 BBTUD for the September–December period.
Komaidi explained that Malaysia has appointed Petronas as the sole gas aggregator. Petronas consolidate all domestic gas supplies and imported LNG, then distributed through the Peninsular Gas Utilisation (PGU) network operated by Petronas Gas Berhad. Meanwhile, in Thailand, a similar role is performed by PTT Public Company Limited (PTT PCL), which acts as the sole buyer for domestic supplies, imported LNG, and pipeline gas from Myanmar.
According to him, this model makes gas prices more stable and supplies more secure. “When domestic gas production is abundant, aggregators can absorb contractors’ production so that prices remain stable. Conversely, when international prices surge, aggregators can optimise reserves or regulate supply so that domestic consumers are not affected,” he said.
Komaidi added that more than 90 per cent of the gas market share and infrastructure in Indonesia is currently controlled by the Pertamina Group. Therefore, according to him, Pertamina, through its Gas Subholding (PGN), is the most potential and logical party to be assigned as the national gas aggregator and integrator.
The recent gas shortage was caused by a number of factors, including a natural decline in upstream production, unplanned shutdowns by suppliers, delays in additional supply schedules, and the lack of a commitment to allocate LNG to cover the deficit. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)
