Indonesia has abundant gas reserves, but its utilization is still far from optimal due to the slow development of infrastructure, says an energy expert. 

"The existence of offshore energy sources requires extraordinary infrastructure. Without accelerated development, we will continue to face an imbalance in supply and demand," Herman Agustiawan, a 2009-2014 member of the National Energy Council (DEN), spoke in a virtual discussion entitled "Natural gas business problems in supporting energy self-sufficiency", which was held on Wednesday, March 19, 2025. 

He highlighted the decline in national gas production since 2015, citing that Indonesia's gas production has decreased by an average of 2.38 percent per year, from 8,078 million standard cubic feet per day (MMSCFD) in 2015 to 6,640 MMSCFD in 2023. 

"If this trend continues without any efforts to increase production and adequate infrastructure, Indonesia could face a gas supply deficit in the next few years," he said.

Furthermore, Herman emphasized the importance of legal certainty in the oil and gas sector. According to him, without clear and stable regulations, investment in the gas sector will be hampered. 

"Our challenges besides infrastructure are legal and business certainty. This is not something that can be considered trivial. Law enforcers must be more disciplined in carrying out their mandate," he said. 

Herman proposed accelerating the development of gas infrastructure and increasing oil and gas production capacity. He emphasized that gas projects planned to operate in 2027 must be optimized immediately in order to offset the ongoing decline in production. 

Dependence on gas imports

Chairman of the Indonesian Gas Society, Aris Mulya Azof, said that Indonesia will increasingly depend on gas imports in the near future due to increasing domestic demand that is not balanced by sufficient domestic production. 

"Indonesia will currently need more gas imports along with increasing domestic demand. Although we supply quite a lot of energy, there must be a proper balance between domestic and foreign supplies," Aris said. 

He added that more optimal management of domestic gas reserves is needed to maintain long-term energy security, while still considering imports as a backup strategy. 

Meanwhile, Oil and Gas businessman, Syarif Bastaman, emphasized that domestic gas exploitation must be maximized immediately so that Indonesia does not become increasingly dependent on imports. 

"If we do not immediately utilize domestic gas, we could lose a big opportunity. Domestic gas should not be considered a fossil that must be avoided. We need to immediately exploit this resource," Syarif, owner of the Syabas Energy Group, said.