Nandito Putra, Jakarta – The President Director of Perusahaan Gas Negara (PGN), Arief Setiawan Handoko, stated that the import of Indonesia's liquefied natural gas (LNG) is not urgent. According to him, the national gas production of 6,600 MMSCFD still meets domestic demand.
He said that PGN will focus on maximizing the domestically produced LNG. Arief mentioned, "The supply that is distributed domestically ranges from 3,300 to 3,500 MMSCFD. The total supply is still sufficient, and that is the priority," Arief said after attending a CNBC coffee morning discussion in the Kuningan area of South Jakarta on Thursday, July 17, 2025.
Nevertheless, Arief mentioned the fundamental issue in utilizing LNG, namely the unequal distribution. He continued that this constraint occurred due to the lack of LNG pipeline infrastructure connecting to the industrial centers that require it.
"Currently, the demand is higher, but the distribution is uneven. There is a mismatch between the production location and the locations that require it," Arief said.
Therefore, he stated that PGN plans to build infrastructure to connect the currently unconnected networks, both through pipelines and beyond-pipeline methods. Beyond the pipeline, he said that PGN already has a Floating Storage Regasification Unit (FSRU) to accommodate LNG and can be connected to the pipeline network.
"Our FSRU is located in Teluk Lamong, and there is also the Arun Gas facility. In essence, PGN's work is to connect gas producers from the eastern region to the western region of Indonesia," said Arief.
Separately, Vice Chairperson of the People's Consultative Assembly (MPR) Eddy Soeparno said that importing LNG could be an option if it aligns with industrial needs. According to him, if a gas supply shortage affects production activities, importing LNG is a realistic step.
"We support measures to prevent industrial sector failures due to gas shortages. If opening up and providing relaxation for imports is necessary, the policy must be implemented promptly," said Eddy.
This member of the House's Energy Commission emphasized that gas supply shortages should not impact labor-intensive gas-consuming industries. He stated that certain sectors use gas not only as fuel, but also as a raw material, such as the steel, fertilizer, glass, ceramics, and petrochemical sectors.
"These are sectors that absorb a lot of labor. I think it is indeed necessary to prioritize sectors that require large gas supplies," he said.
Previously, Coordinating Minister for the Economy Airlangga Hartarto stated that the Indonesian government is considering increasing the volume of several imported commodities from the United States, including oil and gas products. This discourse emerged amid negotiations between the two countries following the announcement of import tariffs by U.S. President Donald Trump.
Airlangga also admitted to having discussed the plan with Minister of Energy and Mineral Resources Bahlil Lahadalia. He also assured that the plan to increase imports will not add to the state's financial burden.
"This will not increase, but it's the realization of purchases, a switch. So, it will not disturb the state budget," said Airlangga on April 11.
The Secretary-General of the Ministry of Energy and Mineral Resources, Dadan Kusdiana, said that Indonesia will not be importing LNG from the United States anytime soon. Dadan stated that current domestic LNG production is adequate for national needs.
"For the first three months, we ensure that LNG supplies are available domestically, and we will optimize the existing production," Dadan told reporters at the BPH Migas Office in South Jakarta on Friday, April 11, 2025.
Source: https://en.tempo.co/read/2029367/pgn-prioritizes-use-of-domestically-produced-ga