President Director of state-controlled gas distribution company PT Perusahaan Gas Negara (PGN), Arief Setiawan Handoko, stated that importing liquefied natural gas (LNG) is not an urgent necessity. According to him, domestic gas production, which currently reaches 6,600 million standard cubic feet per day (MMSCFD), is still sufficient to meet national demand.
He emphasized that PGN will focus on optimizing the use of domestically produced LNG. "Currently, around 3,300 to 3,500 MMSCFD is distributed for domestic use. Overall, the supply is still adequate, and that remains our priority," said Arief during a CNBC Coffee Morning discussion on Thursday, July 17, 2025.
However, Arief acknowledged a fundamental issue in LNG utilization—uneven distribution. This challenge, he explained, stems from the lack of adequate LNG pipeline infrastructure connecting production sites to industrial centers in need of gas.
"Demand is increasing, but distribution remains imbalanced. There’s a mismatch between production locations and areas where demand is high," he said.
To address this, PGN plans to expand infrastructure to connect currently unlinked gas networks—both through pipelines and non-pipeline solutions. For the latter, PGN already operates Floating Storage Regasification Units (FSRUs) to store LNG and channel it into the pipeline network.
"Our FSRU is located in Teluk Lamong, and we also have facilities at Arun Gas. Essentially, PGN’s role is to bridge gas producers in eastern Indonesia with consumers in the west," Arief added.
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Eddy Soeparno, a member of the House of Representatives Commission XII on energy, earlier said that LNG imports could be a viable option if aligned with industrial needs. He asserted that if a gas shortage disrupts production, importing LNG becomes a practical solution.
“We support measures that prevent disruptions to the industrial sector due to gas shortages. If this requires easing import regulations, such policies should be implemented immediately,” said Eddy.
Eddy stressed that gas supply shortages must not affect labor-intensive industries. He noted that several sectors, such as steel, fertilizer, glass, ceramics, and petrochemicals, use gas not only as fuel but also as a raw material.
“These sectors employ large numbers of workers. I believe they should be given priority access to gas supplies,” he said.
Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the Indonesian government is open to increasing imports of certain commodities from the United States, including oil and gas products. This proposal emerged amid trade negotiations between the two countries following U.S. President Donald Trump’s announcement of new import tariffs.
Airlangga said he had discussed the plan with Energy and Mineral Resources Minister Bahlil Lahadalia and ensured that the proposed import increase would not strain the state budget.
“This isn’t additional spending—it’s a reallocation of purchases. So, it won’t impact the state budget (APBN),” Airlangga said on April 11.
Meanwhile, Energy and Mineral Resources Ministry Secretary-General Dadan Kusdiana confirmed that Indonesia has no immediate plans to import LNG from the United States. He said domestic LNG production remains sufficient to meet national needs.
“For the first three months, we’re ensuring that domestic LNG supply remains available and we’ll continue to optimize existing production,” Dadan told reporters in April.
Editing by Reiner Simanjuntak
