Indonesia to reassess gas exports ahead of petrochemical hub plans
The proposed East Kalimantan hub would use domestic gas as industrial feedstock, with the government seeking a more even spread of regional growth.
Indonesia plans to reconsider the share of natural gas sent overseas to support domestic demand and planned petrochemical processing, Bahlil Lahadalia, Coordinating Minister for Downstreaming and Energy Transition, said in Jakarta.
Bahlil, who also holds the energy and mineral resources portfolio, said the assessment would prioritise gas for domestic users, including industries using it as raw material. About 30 per cent of Indonesia’s natural gas output goes abroad, while 70 per cent serves domestic needs.
The reassessment is intended to support a proposed petrochemical hub in East Kalimantan. Those plans were highlighted when the JNE#6 gas project and the Maha-South Hub field’s production facilities were inaugurated.
Bahlil said new gas discoveries should be accompanied by downstream development so industrial users have dependable feedstock. He said placing the hub outside Jakarta was intended to spread economic growth more evenly, with regional processing supporting jobs, local value creation and non-tax state revenue for the regions.
On potential adjustments to gas shipments to neighbouring countries, Bahlil said the government would consider the relevant factors and maintain respectful ties with its partners.
