In Indonesia’s national primary energy mix, natural gas still plays an important role as one of the main energy suppliers, ranking third after coal and oil.
According to data from Indonesia’s Ministry of Energy and Mineral Resources, the contribution of natural gas to the national energy mix in 2023 reached approximately 16%.
Considering that natural gas is a non-renewable energy source, can it still play a strategic role in the coming years based on current reserve levels? Let’s take a closer look at the facts.
How Much Are Indonesia’s Latest Natural Gas Reserves?
Based on the official report Oil and Gas Statistics Semester I 2024 published by Indonesia’s Ministry of Energy and Mineral Resources, the following is the latest data on Indonesia’s natural gas reserves.
Total Natural Gas Reserves in Indonesia
As of 2023, Indonesia’s total natural gas reserves were recorded at 54.76 TSCF (Trillion Standard Cubic Feet).
This figure represents the cumulative volume of Indonesia’s natural gas reserves, consisting of proven reserves and potential reserves, as classified in the official national oil and gas statistics.
Historically, Indonesia’s natural gas reserves have shown a declining trend since 2019. This condition indicates that the sustainability of the national gas supply is facing challenges, particularly because gas production continues while the addition of new reserves does not always occur at a balanced pace.
Therefore, exploration efforts must continue to be encouraged so that discoveries can be converted into reserves that are ready for development and commercial utilization.
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Proven Natural Gas Reserves in Indonesia
Of Indonesia’s total natural gas reserves, proven reserves amount to 35.30 TSCF. Proven reserves are volumes of gas that, based on geological and engineering data analysis, can be commercially produced from discovered reservoirs.
For businesses, proven reserves represent the highest level of business certainty, as they reflect gas availability that has been technically and economically verified.
The existence of these reserves provides a strong foundation for planning gas supply contracts, both for domestic industrial needs and for exports, over the medium to long term.
Potential Natural Gas Reserves in Indonesia
In addition to proven reserves, Indonesia also has 19.46 TSCF of potential natural gas reserves. These reserves include gas resources that have been identified but still require further appraisal, technological development, and economic feasibility assessment before they can be commercially produced.
The conversion of potential reserves into proven reserves depends heavily on several key factors, including:
- The application of technology for developing fields with high levels of complexity.
- The availability of investment for drilling and well development activities.
- Regulatory certainty and fiscal incentives from the government, including contract schemes such as gross split and cost recovery.
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Where Are Indonesia’s Natural Gas Reserves Located?
Indonesia’s natural gas reserves are not concentrated in a single region, but are spread from west to east across the archipelago.
Based on the latest data, Maluku and Papua are the regions with the largest natural gas reserves, with Maluku dominated by the development of the Masela Block and Papua by the Tangguh project.
In addition, South Sumatra, East Kalimantan, Sulawesi, and East Java are also major contributors to the national gas supply.
The distribution of these reserves has a direct impact on cost structures and logistics. Industrial areas on Java Island, for example, are highly dependent on gas pipeline infrastructure connecting supply sources from Sumatra and East Java.
Meanwhile, eastern regions of Indonesia, such as Papua and Maluku, have large gas reserves but are relatively far from the main demand centers.
This condition opens opportunities for the development of downstream industries near gas sources, such as petrochemicals and gas processing facilities, to increase added value while reducing distribution costs.
For businesses, choosing investment locations close to natural gas reserves has the potential to improve energy cost efficiency and strengthen supply chain competitiveness.
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Why Is Indonesia’s Natural Gas Reserve Data Important for Businesses?
For industry players, natural gas reserve data is not merely statistics, but a strategic indicator in long-term business decision-making.
This data provides an initial overview of the sustainability potential of the national energy supply, which is crucial for sectors ranging from manufacturing to power generation that rely heavily on natural gas.
First, gas reserve data serves as an indicator of long-term energy supply potential, although actual supply realization is still influenced by production capacity, infrastructure availability, and domestic gas allocation policies.
This information helps businesses assess the risk of energy shortages that could disrupt operations in the future.
Second, natural gas reserve data is one of the key foundations for investment and expansion planning.
Companies planning to build gas-based production facilities typically combine data with economic feasibility studies and supply plans to assess project viability. Proximity between investment locations and gas supply sources is also considered to reduce distribution and logistics costs.
Third, the availability of adequate domestic gas reserves can help reduce dependence on gas imports.
This contributes to domestic energy price stability and mitigates the impact of global price volatility driven by geopolitical dynamics, allowing industrial operational costs to remain controlled and competitive.
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What Is the Role of Indonesia’s Natural Gas Reserves in the Energy Transition?
In the era of energy transition, natural gas, especially LNG (Liquefied Natural Gas), is viewed as a bridge fuel that connects fossil-based energy systems to renewable energy systems.
Compared to coal, LNG produces lower carbon emissions in power generation.
Therefore, in Indonesia’s Net Zero Emission 2060 roadmap, LNG plays a supporting role as a transitional energy source while awaiting the dominance of New and Renewable Energy and other low-carbon technologies.
The government is encouraging increased utilization of gas for domestic needs through domestic market allocation policies. This step aims to strengthen the competitiveness of national industries by reducing emissions while maintaining energy security.
Adequate natural gas reserves play a vital role in maintaining the reliability of the national energy system.
While renewable power plants such as solar and wind still face challenges related to intermittency and infrastructure limitations, LNG functions as a stable energy supply backbone. Through this role, natural gas helps gradually reduce emissions while supporting the acceleration of the transition toward a cleaner energy system.
References:
- Kementerian ESDM. Accessed in 2025. Statistik Migas Semester I 2024
- Kementerian ESDM. Accessed in 2025. Pemerintah Kejar Target Tingkatkan Bauran EBT
