Upstream-downstream sectors collaboration key to energy self-sufficiency

  • Published on 27/02/2025 GMT+7

  • Reading time 3 minutes

  • Author: Gusty Da Costa

  • Editor: Imanuddin Razak

Collaboration between upstream and downstream sectors is crucial to ensuring the availability and sustainability of natural gas energy in Indonesia, energy experts said. 

Addressing the EITS Discussion Series 2025: Accelerating gas infrastructure towards energy self-sufficiency in Jakarta on Wednesday, February 26, 2025, Abadi Purnomo, a member of the National Energy Council, said that building adequate infrastructure and utilizing natural resources efficiently are key to a more independent and sustainable energy future for Indonesia.

“The success of Indonesia’s energy transition is not solely the government’s responsibility. It requires contributions from all sectors, including society and industry, to achieve national energy self-sufficiency,” he said.

He emphasized the importance of long-term planning in Indonesia’s energy transition. 

“Fossil energy, particularly gas, still plays a significant role in meeting national energy demands. However, we are also focusing on renewable energy development to ensure Indonesia’s energy resilience in the future,” Abadi said.

He, however, noted that while transitioning to green energy is a priority, natural gas remains vital, especially for power generation and industrial sectors. He also highlighted the gradual approach required for the energy transition, given Indonesia’s continued reliance on fossil fuels.

“Coal-based power plants must adopt cleaner technologies in the future, while natural gas will continue to be a crucial component of Indonesia’s energy development,” Abadi said.

With Indonesia aiming for net-zero emissions by 2060, Abadi stressed the need for a well-planned reduction in fossil energy use.

“In the coming years, we hope Indonesia can reduce its dependence on fossil fuels while increasing renewable energy utilization, all while maintaining economic and industrial stability,” he remarked.

Meanwhile, Head of Engineering and Technology Group at State-owned gas distribution company PT PGN, Suseno, highlighted PGN’s role in supplying clean natural gas to various industries, thereby supporting national economic growth.

“Our role at PGN is to provide clean natural gas as both fuel and raw material to sustain domestic industries,” Suseno said. 

He underscored the importance of developing gas infrastructure, including LNG terminals and gas pipeline networks, which now span more than 33,000 km across Indonesia. PGN continues to strengthen this infrastructure to address future supply challenges.

“The development of gas networks and LNG terminals is essential to ensuring an adequate energy supply, particularly in regions that still lack access to gas infrastructure. This also aligns with PGN’s efforts to integrate energy commodities across various sectors to enhance cost efficiency,” he said.

Overall, speakers at the event agreed that collaboration between the government, state-owned enterprises, and the private sector is essential for a successful energy transition. They also stressed the importance of substantial investments in energy infrastructure, including gas networks, LNG terminals, and renewable energy development, to ensure Indonesia meets its energy resilience goals and net-zero emissions target by 2060.

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