The government has maintained that natural gas is the primary source of energy transition in the country's energy strategy. Mirza Mahendra, Director of the Program Development Division at the Ministry of Energy and Mineral Resources (ESDM), said while representing Acting Director General of Oil and Gas, Tri Winarno, outlined the government’s focus on prioritizing gas use for domestic needs.

He highlighted that since 2012, domestic gas consumption has outpaced exports, demonstrating a strong government commitment to ensuring energy resilience through domestic gas utilization.

"Domestic gas consumption has surpassed exports since 2012. This marks a firm commitment from the government to prioritize gas for domestic use, strengthening energy security," Mirza said while addressing "DE Talk" webinar on "Optimizing Gas Supply for Strengthening Energy Transition," held virtually on Tuesday, August 5, 2025.

He pointed out that natural gas emits lower carbon compared to other fossil fuels, positioning it as a bridge energy toward achieving the country’s Net Zero Emission (NZE) target by 2060. He underscored that Indonesia’s ample natural gas reserves, coupled with competitive pricing, make it a strategic asset during the transition from fossil to clean energy. With an eye on the 2025-2029 period, the government plans to develop regulations for decarbonization, increase domestic gas use, and build the national gas transmission and distribution network.

Key challenges such as declining oil and gas production, price disparities, and the slow integration of renewable energy remain focal points for policymakers. "Developing infrastructure is vital to ensure the efficient and equitable distribution of gas. This requires investment support from all sectors,” Mirza cited. The government’s strategy positions natural gas as a cornerstone in Indonesia's energy transition, focusing on both strengthening energy security and advancing toward cleaner, sustainable energy. Infrastructure development and regulatory support will be essential to leverage gas as a bridge toward a future of zero-emissions.

Gas power plants

Rakhmad Dewanto, CEO of State energy company PT PLN Energi Primer Indonesia (PLN EPI), emphasized that gas-based power plants will play a crucial role in supporting the development of renewable energy while ensuring the reliability of national electricity supply. According to Rakhmad, the utilization of gas aligns with two of President Prabowo Subianto’s eight national priority programs (Asta Cita): energy independence and industrial downstreaming. "Gas is a strategic choice due to its abundant resources and its ability to support the electricity sector with both reliability and flexibility," he said.

The National Electricity Supply Business Plan (RUPTL) projects a 67 percent increase in national electricity demand from 306 TWh in 2024 to 511 TWh in 2034. This growth is driven by data center expansion, downstream industries, and electric vehicles. "We project that gas demand for the electricity sector will grow at an average rate of 5.3 percent per year until 2034," Rakhmad cited.

PLN aims to add 69.5 gigawatts of generation capacity over the next decade, with more than 70 percent coming from renewable energy. However, due to the intermittent nature of renewable sources such as solar and wind, gas plants are essential for providing flexibility and fast-response backup. "Gas power plants can operate quickly as backup when renewable energy is unavailable. Moreover, they have shorter construction timelines of just 2–3 years," Rakhmad noted.

Currently, PLN operates approximately 15 GW of gas-based plants and requires an additional 10.3 GW to support the system over the next 10 years. This will be accompanied by the conversion of fuel-based plants to LNG in areas such as Tarakan, Nias, and Sulawesi. PLN also highlighted the importance of regasification infrastructure and integrated gas pipeline networks to ensure gas distribution reaches electricity demand centers, which are mainly located in Java and Sumatra.

"We need support from the government and SKK Migas (Upstream Oil and Gas Regulatory Task Force), particularly in ensuring gas allocation certainty and expediting infrastructure project permits," Rakhmad concluded.