Natural Gas as a Bridge to the Energy Transition


The Indonesian Government seeks to achieve Indonesia’s zero-emission target. One of the government’s programs is the transition of the conventional energy to cleaner and environmentally friendly energy, such as natural gas. This energy transition issue will be discussed more deeply in Indonesia’s G20 agenda.

The national energy sector now has to face two main challenges at once, increasing production to ensure energy security and reduce import burdens, as well as achieving the net zero emission (NZE) target.

Executive Director of the Indonesian Petroleum Association (IPA), Marjolijn Wajong, said efforts to maintain energy security during the current transition period are something that all stakeholders need to pay attention to. Considering that the utilization of new and renewable energy in Indonesia is still not optimal.

Therefore, according to him, natural gas, as a fossil-based energy source is cleaner than coal. Then, oil is expected to be a mainstay in supporting the existing energy transition.

“Natural Gas as a Bridge to the Energy Transition,” in Jakarta, Tuesday (23/8/2022).

According to him, Indonesia has enormous natural gas potential so it is believed that it can support the energy transition process while still meeting national energy needs.

However, there is a lot of homework that must be addressed first so that the existing gas potential can be produced and utilized optimally.

Marjolijn assesses that policymakers should continue to try to ensure that the policies made can increase investor confidence to continue investing in existing gas projects, especially in terms of the economy.

In addition, the sustainability of gas projects also needs to be considered so that the availability of natural gas as an energy source is not interrupted.

Meanwhile, Deputy Chairperson of the Indonesian Natural Gas Users Forum (FPGBI), Achmad Widjaja said that gas is a very important raw material to drive the industry.

However, currently, the majority is still intended to meet export needs rather than domestic industry. As a result, the domestic demand for natural gas for the national industry has not been optimally met.

Regarding prices, Achmad assessed that certain natural gas price policies that have been made by the Government so far have not had a significant impact.

“It is felt that this policy has not yet seen an impact on the seven types of industries in question. There has been no innovation, increased competitiveness, and the creation of a multiplier effect as expected, according to Ministerial Decree 134/2021,” he said.

According to Achmad, the role of it should be irreplaceable because apart from being a raw material or commodity, natural gas is also the most efficient source of energy.

“That’s why the government needs to pay special attention not only to the downstream industry but also to the upstream industry which is a natural gas producer,” he said.