Optimization of Natural Gas for Indonesia’s Energy Independence, Sovereignty and Security

Satya Widya Yudha,

Member of The National Energy Council

The continued rise of the National Energy Demand is expected. In his presentation, a Member of the National Energy Council, Satya Widya Yudha, said that based on the assumption of the General Draft of National Energy (RUEN), to meet domestic gas consumption the country needs around 11 billion cubic feet of natural gas per day. However, in reality, domestic gas production has only reached around 5.1 billion cubic feet of natural gas per day, so there is a gap of around 6.2 billion cubic feet of gas that must be met through import.

“The 2020-2030 Gas Balance shows that in 2030 there will be a gas supply of 6.8 BSCFD (based on demand commitments). However, should there be new demand created in accordance with the projected RUEN requirement of 11.3 BSCFD, then there would be a deficit of around 4.5 BSCFD. So we need efforts to increase production,” he said at the Plenary Session 2, 2021 IPA Convex held virtually Thursday (2/9) this morning.

Satya said the gas production target of 12 BSCFD is indeed higher than what was listed in the 2017 General National Energy Plan (RUEN). However, the demand side needs to be calculated as well. “We calculated everything and listened to what the industry, private sector and oil and gas industry said to capture demand. Not only capturing but creating demand,” he said.

Satya elaborated that investors and gas producers need support, including certainty of demand, especially from the power generation sector, the industrial sector (fertilizers, petrochemicals, others), and the transportation sector. In addition, gas prices determination must take into account the economics of the gas field and the availability of gas infrastructure.

Satya said the 2017 RUEN planning itself was based on the assumption of economic growth of around 7-8 percent. However, in time Indonesia is hit by the Covid-19 pandemic which had adverse effects on the economy. Economic growth until 2045 is projected to average around 5 percent. This opened a discussion to revise the RUEN to be more grounded concerning economic growth.

“In the implementation of GSEN and RUEN, we must have a common understanding of maximizing the potential of Natural Resources, including natural gas, for the energy  sovereignty, independence, and security,” he concluded.

PROFILE

 Satya Widya Yudha (SWY) is currently a Member of the National Energy Council of the Republic of Indonesia (DEN-RI) for the 2020-2025 period, after being proposed and appointed by the President of the Republic of Indonesia with the approval of the Indonesian Parliament.

From October 2014 to February 2018, he served as Vice Chairman of Commission VII of the House of Representatives of the Republic of Indonesia—overseeing energy, mineral resources, environment, forestry, research, and technology. He currently serves as Vice Chairman of Commission I overseeing defense, foreign affairs, communication and informatics, and intelligence from March 2018- September 2019. He is also the chairman of the Green Economy and Alternative Energy Caucus (GEC) of the House of Representatives. He is also Chairman of the Indonesia-India Bilateral Cooperation Group of the House of Representatives. He has had more than 23 years of experience in the oil and gas industry, both in Indonesia and overseas.

Satya Widya Yudha served as a member of the House of Representatives for 2009–2014, representing the Golkar party and the East Java IX constituency, which comprises the regencies of Tuban and Bojonegoro. In Golkar, Satya Widya Yudha once served as Vice Secretary-General of the Central Executive Board for Energy and Natural Resources,  as well as Head of Natural Resources in the party’s daily executive board.