Indonesia: Halting Natural Gas Exports from 2036

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Liputan6 English Version – Indonesia has announced an ambitious plan to completely cease the export of natural gas starting in 2036. This decision was disclosed by Djoko Siswanto, the Secretary-General of the National Energy Council (DEN), as part of an effort to prioritize natural gas supplies for domestic use.

As one of the leading natural gas exporters in Southeast Asia, Indonesia had previously sold a significant portion of its natural gas production in the international market, primarily to countries like Japan and South Korea. However, with this new policy, the government is committed to redirecting the entire natural gas supply for domestic consumption.

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The primary rationale behind this move is to enhance domestic energy security. By ensuring that all natural gas is utilized for domestic needs, the government hopes to consistently meet the country’s energy requirements and mitigate risks associated with fluctuations in global natural gas prices and supplies.

This policy is also an endeavor to reduce the country’s reliance on fossil energy resources such as oil and coal. The government anticipates that this step will encourage the development of renewable and environmentally friendly energy sources in the future.

Nevertheless, this policy has raised questions about its economic impact. Indonesia had previously received substantial revenue from natural gas exports, and discontinuing exports may have economic repercussions for the country. The government plans to conduct a comprehensive evaluation to understand the economic implications of this decision and seek a balanced solution that accommodates both domestic interests and natural gas exports.

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The decision to halt natural gas exports reflects Indonesia’s commitment to prioritize energy security and promote sustainable energy, although it presents economic challenges that need to be addressed. This decision will closely monitor significant changes in Indonesia’s natural gas industry and may influence the energy market in the Southeast Asian region.(MIS)

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