Business · Energy & Commodities · 17 hrs ago

Indonesia’s Gas Export Cut Raises Questions About Domestic Infrastructure

Indonesia’s Gas Export Cut Raises Questions About Domestic Infrastructure

Indonesia plans to cut gas exports to Singapore by 31 billion British thermal units a day.

Sugeng Suparwoto of Indonesia’s House of Representatives Commission XII said the gas should be redirected to domestic users.

He said the change needs confirmed buyers for the redirected gas and careful calculations and dialogue to avoid disputes.

Indonesia is also seeking to strengthen its gas sector by increasing exploration.

But gas infrastructure remains a major constraint, especially outside Java, where transmission lines and pipes for industry and households are lacking.

Much of the country’s gas potential is in eastern Indonesia, while demand is concentrated on Java and Sumatra.

The commission also urged Indonesia to handle oil and gas cooperation with partner countries carefully, including within ASEAN.

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