Jakarta (ANTARA) - Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia said Indonesia will review gas exports to optimize domestic supply ahead of plans to develop a downstream petrochemical industry.
Speaking in Jakarta on Friday, Bahlil, who also serves as energy and mineral resources minister, said the government would reassess gas allocation ratios to prioritize domestic consumption and ensure sufficient feedstock for industrial processing.
“Moving forward, I intend to conduct a reassessment to optimize gas for domestic consumption, including its use as a raw material,” Bahlil said.
Indonesia currently exports about 30 percent of its natural gas production and allocates the remaining 70 percent to domestic needs, figures that will inform the policy review.
Regarding possible changes to exports to neighboring countries, Bahlil said the government would weigh all relevant considerations while maintaining mutually respectful relationships with its partners.
The policy review supports plans to develop a petrochemical hub in East Kalimantan, highlighted during the recent inauguration of the JNE#6 gas project and production facilities at the Maha-South Hub field.
Bahlil said downstream processing must advance alongside new upstream gas discoveries to ensure a reliable supply of feedstock for industry.
Locating the planned industrial hub in East Kalimantan rather than Jakarta is also intended to distribute economic growth more evenly across Indonesia’s regions.
“By fostering downstream industrialization in the regions, we are creating local jobs, generating local value-added, increasing non-tax state revenue for the regions and empowering the regions to become masters in their own land,” Bahlil said.
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Translator: Putu Indah Savitri, Yashinta Difa
Editor: Rahmad Nasution
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