By: Jihan Damayora Seigi)*
The Indonesian government continues to demonstrate a strong commitment to achieving national energy self-sufficiency and meeting its decarbonization targets by 2025. In this context, natural gas has been designated as one of the key pillars of the country’s energy transition. As a cleaner alternative to coal and oil, natural gas not only reduces carbon emissions but also strengthens energy security by relying on abundant domestic resources. Amidst global demands for emission reductions and ongoing geopolitical uncertainties, the government’s strategic positioning of natural gas deserves recognition.
Through various ministries and strategic state-owned enterprises (SOEs), the Indonesian government is accelerating programs to utilize natural gas as a transitional energy source. This effort is not just about reducing dependence on oil-based fuels, but also about building a solid foundation for national energy resilience and independence. In this regard, PT Perusahaan Gas Negara Tbk (PGN) plays a central role in developing infrastructure and expanding gas utilization across various industrial sectors.
Rosa Permata Sari, Director of Strategy and Business Development at PGN, emphasized that natural gas offers advantages beyond its lower carbon emissions — particularly in terms of cost-effectiveness and operational efficiency. The acceleration of national gas distribution infrastructure development, including gasification of power plants and the expansion of household gas networks, has become the backbone of the country’s energy transition.
Under government oversight, PGN has prepared multiple scenarios and strategic plans to support the increased utilization of domestic natural gas. As of mid-2025, PGN operates more than 12,000 kilometers of gas pipelines, with medium-term targets to add thousands more kilometers to expand access to previously underserved areas. This demonstrates the government’s ongoing commitment to equitable public service.
PGN President Director Arief Setiawan Handoko stated that one of PGN’s top priorities is ensuring reliable gas supply for the industrial and power generation sectors, which are vital to the national economy. Through integrated management, domestic gas supplies from various sources are being optimized to meet rising national demand. He assured that gas supply for strategic industries remains stable and sustainable — crucial for maintaining industrial competitiveness, efficiency, and supporting economic growth. He also added that the use of gas for power generation is a concrete step in reducing emissions and gradually shifting away from coal.
As global pressure mounts against high-emission fossil fuels, Indonesia is taking a pragmatic approach by positioning natural gas as a bridge energy. Gas is cleaner than coal and oil, and current infrastructure allows for its efficient utilization. This aligns with Indonesia’s commitment to the Paris Agreement and its Net Zero Emission (NZE) target by 2060. The government is not rushing to abandon fossil fuels but is instead implementing a gradual, measured transition.
This natural gas initiative cannot be separated from close cooperation with the upstream oil and gas sector. Nanang Abdul Manaf, Executive Director of the Indonesian Petroleum Association (IPA), stated that the upstream industry fully supports government policies shifting the primary energy share toward gas. According to him, the upstream sector is ready to increase domestic gas production — provided there is certainty regarding offtakers, attractive pricing, and accelerated downstream infrastructure development.
Nanang emphasized that Indonesia still has large untapped gas reserves. With investment-friendly policies and certainty in the domestic market, oil and gas investors will be more inclined to develop new gas blocks. He also recommended more attractive fiscal incentives so that domestic gas development can compete with LNG and other fossil fuel exports.
All of these efforts align with Indonesia’s vision for energy independence — relying on its own resources to meet domestic needs, reducing reliance on imports, and building a healthier, more competitive, and sustainable energy ecosystem. Natural gas, with its flexibility, lower emissions, and well-established technology, is key to bridging the transition to clean energy without disrupting the existing economic structure.
Looking at the government’s strategic steps — from empowering PGN, supporting upstream investment, to implementing adaptive regulations — it is clear that the current direction of national energy policy is well-aligned. The government’s consistency in promoting upstream-downstream integration and accelerating gas infrastructure development is proof that energy transition is not just rhetoric, but a concrete policy agenda. This is an inclusive, realistic, and nationally-driven approach to transitioning energy systems.
*) The author is an Energy and Natural Resources Policy Analyst