Executive Summary

Key insights and market outlook

The Indonesian government is implementing a policy to prioritize domestic gas consumption while gradually reducing exports ¹

. As of September 2025, domestic gas utilization reached 69.68% of total production ¹³. The government aims to further increase domestic utilization in the coming years. The energy ministry is also focusing on boosting oil and gas production and controlling coal production starting 2026 ².

Full Analysis

02

Deep Dive Analysis

Indonesia Shifts Focus to Domestic Gas Consumption

Policy Changes in Energy Sector

The Indonesian government has announced a significant policy shift in the energy sector, prioritizing domestic gas consumption over exports ¹

. This move aims to maximize the use of the country's natural resources for internal economic development. As of September 2025, the average daily gas utilization reached 5,594.2 Billion British Thermal Unit (BBTU) ¹³.

Domestic Utilization Statistics

Total gas production: 5,594.2 BBTU/day
Domestic consumption: 3,895 BBTU/day (69.68%)
Exports: 1,698 BBTU/day

Rationale Behind the Policy

The decision to reduce gas exports gradually is driven by the government's desire to support domestic industries and ensure energy security ¹

. Indonesia's proven gas reserves stand at 34,782 BSCF, with total reserves (including probable and possible reserves) amounting to 55,852 BSCF as of January 2025 ³.

Future Energy Plans

The Ministry of Energy and Mineral Resources (ESDM) is also planning to boost oil and gas production in 2026, with a target of producing at least 610,000 barrels per day of oil ²

. This plan is part of a broader strategy to enhance energy self-sufficiency and manage natural resources more effectively.

References