ESDM ministry: Natural Gas, reliable source for national energy security

  • Published on 27/02/2025 GMT+7

  • Reading time 4 minutes

  • Author: Gusty Da Costa

  • Editor: Imanuddin Razak

National energy security remains a crucial issue for the Indonesian government, particularly in the energy transition and optimization of existing natural resources, with natural gas emerging as an alternative energy source to achieve national energy security and self-sufficiency.

 

This topic was discussed at the "EITS Discussion Series 2025" hosted by Energy for Transition (EITS) under the theme "Boosting Gas Infrastructure Towards Energy Self-Sufficiency" at Hotel Ibis Menteng in Jakarta, on Wednesday, February 26, 2025. The event brought together key energy sector stakeholders to explore strategies for accelerating gas infrastructure development in support of national energy security.

 

Among the attendees were Director of Oil and Gas Infrastructure at the Ministry of Energy and Mineral Resources (ESDM), Laode Sulaeman; Head of Program and Communications Division at the Upstream Oil and Gas Regulatory Task Force (SKK Migas), Hudi Suryodipuro; Head of Engineering and Technology Group at State-owned gas districution company PT Perusahaan Gas Negara (PGN), Suseno; and Member of the National Energy Council (DEN), Abadi Poernomo.

 

Laode Sulaeman highlighted natural gas as a reliable energy source for ensuring national energy security. 

 

“The evolving global dynamics demand that we maximize our natural resources, such as natural gas, to support energy security,” he said.

 

One of Indonesia’s major achievements in natural gas management is its gas lifting realization, reaching 5,481 mmscf/d, with 3,881 BBTUD (67.08 percent) allocated for domestic distribution in 2024.

 

“Gas has reached all levels of society, from low to high-income groups, and we must continue expanding its distribution to provide economic benefits,” Laode cited.

 

Challenges in energy transition

 

Energy transition, however, is not without challenges. In recent years, the government planned to reduce coal-based power generation, but policy adjustments have been necessary due to evolving circumstances.

 

“Energy transition is full of challenges, but we continue to seek the best solutions, including collaboration among various stakeholders,” Laode said.

 

The government has planned extensive gas infrastructure development, including national transmission and distribution networks. 

 

“Gas transmission pipelines are a top priority, particularly in Java and Sumatra, as the backbone for gas distribution,” he noted.

 

The International Energy Agency (IEA) forecasts that natural gas will remain a stable energy source until 2050, in contrast to declining usage of oil and coal. 

 

“Countries worldwide, including Indonesia, continue to rely on natural gas to strengthen their energy security during the global energy transition,” Laode added.

 

Gas development and infrastructure expansion

 

Meanwhile, Hudi Suryodipuro emphasized natural gas’s vital role in supporting President Prabowo Subianto’s energy self-sufficiency vision. 

 

“Natural gas plays a crucial role in downstream industrialization and increasing domestic value-added,” he said.

 

Hudi highlighted Indonesia’s significant gas potential, with over 50 percent of new field discoveries in the past decade being gas reserves. However, infrastructure remains the biggest challenge in gas development.

 

“The development of gas infrastructure is critical to meeting domestic demand, including power plants, industries, and households,” he said.

 

He said further that the government continues to push for expanded gas pipeline networks, particularly in unconnected regions such as Sumatra and Eastern Indonesia. Additionally, natural gas remains a key component in the energy transition.

 

“Natural gas serves as a transition energy source, helping to reduce dependence on other fossil fuels like coal and oil,” Hudi said.

 

He expressed optimism about Indonesia’s gas industry, driven by major discoveries in North Sumatra and the Makassar Strait, attracting foreign investment interest.

 

“This is the era of gas,” Hudi concluded, emphasizing Indonesia’s vast potential to optimize natural gas as a primary energy source in the future.

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