Indonesia holds back gas exports to prioritize domestic needs
Indonesia has yet to import gas this year, with the government focusing domestic production on meeting local demand while holding back exports, Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has announced.
“We are still able to balance export commitments with foreign countries and domestic consumption needs,” Bahlil told a press conference on the ministry’s first-half 2025 performance on Monday, August 11, 2025.
According to ESDM data, gas production in the first half of 2025 reached 1,146.4 thousand barrels of oil equivalent per day (MBOEPD), or 114 percent of the target. Average production stood at 1,199.7 MBOEPD, equivalent to 119 percent of the target.
During the same period, a total of 5,598 billion British thermal units per day (BBTUD) of gas was utilized in Indonesia, with 31 percent (1,721 BBTUD) exported and 69 percent (3,877 BBTUD) used domestically.
Bahlil acknowledged that Indonesia is deliberately holding back part of its gas exports. “The President’s instruction is to maximize the use of all domestic products for domestic needs,” he said.
He added that any surplus after domestic demand is met could be exported. The government also remains committed to honoring existing contracts with oil and gas contractors (KKKS), noting that breaking them could harm Indonesia’s global reputation.
In the domestic sector, gas utilization is divided into two categories: downstream industrial and fertilizer sectors (2,110 BBTUD), and other domestic uses (1,767 BBTUD), which include compressed natural gas (BBG), enhanced oil and gas recovery, electricity generation, LNG, LPG, and household pipeline gas networks.
Bahlil stressed that channeling gas into downstream industries brings added value to the economy, saves foreign exchange, generates tax revenues, and supports economic growth in regions where factories are built.
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