Safeguarding the Indonesian Energy Security by Optimizing Natural Gas Utilization

Safeguarding the Indonesian Energy Security by Optimizing Natural Gas Utilization

Indonesia’s Energy Security is still facing obstacles. The declining oil and gas production, due to the COVID-19 pandemic and global pressure to reduce carbon emissions, is one of the factors that clog the national energy supply, especially from the oil and gas sector. However, natural gas as clean energy can be a solution to meet energy needs and at the same time reducing carbon emissions.

On the second day of the 45th IPA Convex of 2021 event, Thursday (2/9), there were two Plenary Sessions presenting stakeholders in the oil and gas industry, from the government and industry players.

Plenary Session 2 was titled: “Towards 12 BPFCD, Unlocking the Gas Market”. The panelists were Member of the National Energy Council Satya Yudha, Pertamina Upstream Director Budiman Parhusip, Director of Oil and Gas Program Development of the Ministry of Energy and Mineral Resources Dwi Anggoro Ismukurnianto, Director of Corporate Planning at PLN Evy Haryadi, and Secretary-General of the Natural Gas User Industry Forum Achmad Widjaja.

In the 2nd plenary session, the speakers discussed the problems in the use of natural gas. The speakers stated that the main problems in utilization are absorption and infrastructure, both have not been maximized. To achieve production to meet energy needs, investors and gas producers need support; namely certainty of demand, especially from the power generation sector, the industrial sector (fertilizers, petrochemicals, others), and the transportation sector. In addition, the determination of gas prices must take into account the economics of the field gas and the availability of gas infrastructure.

Plenary Session 3 was titled “Indonesia’s Energy Transition Plan”. The panelists who took part in the discussion were Director-General of Climate Change Control Ministry of Environment and Forestry Laksmi Dwanthi, Secretary-General of the National Energy Council Djoko Siswanto, Chairman of Commission VII The House of Representatives Sugeng Suparwoto, BP Group Chief Economist Spencer Dale, and the Moderator, Marketing & Strategy Director of Schlumberger Asia Fred Majkut.

In the said session, the panelists discussed the strategies for the energy transition. According to Sugeng Suparwoto, the government is currently drafting the New Renewable Energy Law to strengthen the implementation of the energy mix target set by the RUEN. However, fossil energy still plays an important role in the national energy strategy. During the transition period, it was agreed that natural gas would be the solution for the energy transition.