Starting 2036, Indonesia Stops Gas Exports

JAKARTA - Secretary General of the National Energy Council (DEN) Djoko Siswanto revealed that Indonesia will no longer export natural gas in 2036.

This is in accordance with the mandate of Government Regulation Number 79 of 2014 concerning National Energy Policy.

"We will no longer export gas in 2036, we will use it domestically as long as the infrastructure records are complete," Djoko said as quoted on Friday, November 3.

To stop these exports, like Djoko, the government is boosting the construction of the Cirebon-Semarang (Cisem) and Dumai-Sei Mangke natural gas pipelines.

The project financing uses the State Revenue and Expenditure Budget (APBN) through a multi-year scheme, with the need for a Cisem gas pipeline construction budget of IDR 4.47 trillion and Dumai-Sei Mangke at IDR 6.6 trillion.

With the construction of natural gas pipeline infrastructure, it will increase the use of natural gas for domestic needs, said Djoko, one of which is the natural gas network (jargas) for households.

"Now there are almost 900,000 household connections, with the State Budget 80 percent and the remaining 20 percent carried out by PT PGN," he explained.

To increase the use of domestic gas, he continued, the government has set an industrial gas price of 6 US dollars per MMBTU so that it is expected to attract investors to come to Indonesia.

"Investors can come and build factories here, because the gas price is cheap, so it will cause a multiplier effect," added Djoko.

To date, the use of natural gas for domestic needs has reached 68 percent of Indonesia's total natural gas production of 5,446.90 BBTUD, and the rest is for overseas exports.

It was recorded that in 2022 the total export value of LNG Indonesia reached 6.6 billion US dollars, an increase from 4.6 billion US dollars in 2021.

Meanwhile, the export value of gas through pipes in 2022 is US$3.13 billion, an increase compared to 2021 worth US$2.84 billion.