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Government Encourages Energy Self-Sufficiency Through Gas Infrastructure Breakthroughs

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By: Wirahadi Jaya Antara )*

The government continues to strengthen its commitment to realizing national energy self-sufficiency by encouraging massive and integrated gas infrastructure development. This step is in line with the long-term vision to create energy independence, reduce dependence on imported fossil fuels, and increase the efficiency and sustainability of the national energy sector. One of the government’s main focuses is the acceleration of the development of natural gas pipelines that reach industrial areas, special economic zones, and residential areas. With evenly distributed gas infrastructure, it is hoped that public access to clean and cheap energy will be more widely open.

The General Chairperson of the Indonesian Geothermal Association (API), Julfi Hadi, supports a comprehensive evaluation of the direction of geothermal energy development. In order to accelerate the great potential of geothermal energy, the government continues to encourage concrete steps so that its utilization can be realized optimally. Energy self-sufficiency needs to be realized with a new approach in developing this sector. He said that the transformation of paradigms and business models is urgent in order to make geothermal energy part of the national strategic industry.

Natural gas is now considered as one of the transitional energy solutions that bridges the era of fossil fuels to new and renewable energy. The government through the Ministry of Energy and Mineral Resources (ESDM) noted that Indonesia’s gas reserves are still very large, even some regions such as West Papua, East Kalimantan, and Natuna have gas sources that have not been fully utilized. Therefore, the development of gas infrastructure is not only a technical priority, but also part of a national strategy to utilize domestic resources optimally and efficiently.

Concrete steps that have been taken by the government include the development of a household gas network (jargas) which by 2024 has reached more than 800 thousand house connections in various cities. In addition, the development of mini LNG projects and the construction of regasification terminals in various regions are also underway. The government hopes that with the development of a reliable and efficient gas distribution network, the small and medium industrial sector will also benefit from cheap and stable energy. This is considered important to increase the competitiveness of the national industry in the global market.

Meanwhile, the Director General of New, Renewable Energy and Energy Conservation of ESDM, Eniya Listiani Dewi, explained that the government is currently drafting a revision to Government Regulation Number 7 which regulates geothermal management. One of the important things included in the revision is the digitalization of the geothermal work area auction process. This step is expected to create a more efficient, transparent, and easily accessible system for all parties.

Not only from a technical perspective, the government is also encouraging cross-sector collaboration, including cooperation between energy BUMN such as PGN and Pertamina with local governments and the private sector. This collaboration includes regional planning, funding, and sustainable gas infrastructure management. In several regions, the government is also encouraging an energy conversion program for public transportation from BBM to gas, in order to reduce carbon emissions and dependence on imported fuel oil. These programs are also part of the government’s efforts to meet the target of reducing carbon emissions as committed to the Paris Agreement.

This policy has also received a positive response from energy industry players. Pertamina’s President Director, Simon Aloysius Mantiri, said that planned and consistent gas infrastructure development is very important to ensure the sustainability of industrial energy supplies. He emphasized that the guarantee of gas supply will stimulate investment and encourage the growth of the national industry. This is a positive signal for business actors, especially the manufacturing and transportation sectors, which have so far faced the challenge of high and fluctuating energy costs.

However, challenges such as funding and technology are still faced, but the government has prepared strategic solutions such as a blended financing scheme and accelerated licensing. Gas infrastructure projects often require long-term investment and special technology to reach remote areas. Therefore, the government is encouraging a blended finance scheme and the involvement of private investors so that infrastructure development does not depend entirely on the state budget. In addition, accelerated licensing and regulatory harmonization are needed so that gas infrastructure development can run more efficiently and responsively to market needs.

In the context of geopolitics and the global energy crisis, Indonesia can no longer rely on energy imports that are vulnerable to fluctuationsprice and supply. Gas infrastructure breakthroughs are a realistic and strategic step to reduce these risks. Moreover, the availability of large domestic gas provides a great opportunity to meet domestic needs without having to import on a large scale. Gas-based energy self-sufficiency will also strengthen Indonesia’s position as an important player in the energy supply chain in the Southeast Asia region.

With a clear policy direction and continuously strengthened implementation, gas infrastructure breakthroughs are at the heart of the national energy self-sufficiency strategy. The public is also expected to support this program because the benefits will be felt directly, both through more affordable energy tariffs, cleaner air quality, and the creation of new jobs in the energy sector. The government is committed to making gas infrastructure the main foundation in the national energy transformation towards an independent, efficient, and sustainable future.

)* Postgraduate Student of Renewable Energy Engineering, Darma Persada University

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