Key insights and market outlook
Recent natural gas discoveries in Indonesia can help achieve 31.89% emissions reduction target by 2030, equivalent to 915 million tons of CO2e. Replacing 50% of coal and oil consumption with gas can reduce emissions by 159.51 million tons CO2e, or 44.5% of energy sector target. Gas utilization balances economic growth and emission reduction commitments.
Recent significant natural gas discoveries in Indonesia have been recognized for their positive impact on both economic resilience and energy security. According to Komaidi Notonegoro, Executive Director of ReforMiner Institute, these discoveries can play a crucial role in helping Indonesia achieve its climate commitments while maintaining economic stability. The current Nationally Determined Contribution (NDC) target is to reduce greenhouse gas emissions by 31.89% (915 million tons CO2e) by 2030.
The institute's simulation shows that if 50% of Indonesia's current coal and oil consumption is replaced with natural gas, it could lead to an emissions reduction of 159.51 million tons CO2e. This represents approximately 44.5% of the total emissions reduction target for the energy sector. The strategic use of natural gas is seen as a balancing act between maintaining public purchasing power and achieving emission reduction targets.
The increased utilization of natural gas is considered to have a positive impact for several reasons:
The ReforMiner Institute emphasizes that maximizing the benefits of recent gas discoveries requires comprehensive policy support and strategic implementation to ensure that the energy transition is both sustainable and equitable.
Gas Field Discovery Impact Assessment
Emission Reduction Target Review