The Upstream Oil and Gas Regulatory Task Force ( SKK Migas) announced that the country has since Friday, August 22, 2025, begun channeling gas through a multi-party swap mechanism, in an effort to secure domestic supply amid projected shortfalls later this year.
The initiative, coordinated by SKK Migas, is designed to reallocate gas volumes between producers and buyers to balance export commitments with domestic demand.
“This swap mechanism ensures additional supply for domestic industries while keeping contractual obligations intact,” SKK Migas head Djoko Siswanto said in a statement. “It is only possible through close cooperation between upstream contractors, buyers, and the government.”
Under the agreement, Medco Energi Internasional (MEDC), through its subsidiaries Medco E&P Natuna Ltd. and Medco E&P Grissik Ltd., signed a Domestic Gas Swap Agreement on May 21, 2025.
The multi-party deal involves West Natuna Supply Group (Medco E&P Natuna Ltd., Premier Oil Natuna Sea B.V., and Star Energy Kakap Ltd.), South Sumatra Sellers (Medco E&P Grissik Ltd. and PetroChina International Jabung Ltd.), State energy company Pertamina, State gas distributor PGN, Sembcorp Gas Pte Ltd., and Gas Supply Pte Ltd.
As part of the arrangement, 27 billion British thermal units per day (BBTUD) of gas from West Natuna will be redirected to PGN. The delivery will be executed by Medco E&P Grissik Ltd. and PetroChina International Jabung Ltd.
Djoko underlined that the additional supply is meant to secure existing industrial demand rather than accommodate new customers.
“Oil and gas are non-renewable resources. Without new discoveries, reserves will eventually run out. Exploration carries a 70 percent risk of dry holes, and most new findings are in remote offshore areas with high development costs,” he said.
MedcoEnergi director and COO Ronald Gunawan welcomed the move, saying the company is committed to supporting Indonesia’s energy security.
“We appreciate the coordination led by SKK Migas and the collaboration of all parties. MedcoEnergi will also add supply from the South Sumatra block to reinforce national energy resilience,” he said.
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