Indonesia's Gas Demand Surge Prompts Call for Aggressive Exploration

Rising Industrial Demand Drives New Exploration Push

Hadi Ismoyo, an oil and gas industry expert, has strongly urged the Indonesian government to initiate comprehensive exploration of the country's 68 unexplored basins to boost domestic hydrocarbon production. This recommendation comes amid rising industrial demand for natural gas, which has prompted the government to reassess its energy strategy.

Balancing Domestic Needs and Export Plans

The Ministry of Energy and Mineral Resources has announced a policy to gradually reduce gas exports over the coming years, prioritizing domestic industrial needs. Ismoyo emphasized that while surplus gas can still be exported, domestic requirements must take precedence. He stressed that the exploration process is lengthy, requiring 10 to 15 years from initial exploration to commercial production.

Strategic Long-term Planning

The expert highlighted that Indonesia still has significant untapped potential in its 68 unexplored basins. He urged the government, through Pertamina, to aggressively pursue new exploration activities. This long-term strategy is crucial to ensure future energy security and meet the growing demands of Indonesia's industrial sector.

Implementation Challenges

Ismoyo noted that the journey from exploration to commercial production involves multiple technical and commercial stages. The government must therefore adopt a strategic long-term approach to energy development, balancing immediate needs with future requirements. This approach includes supporting Pertamina in its exploration efforts and creating an enabling environment for investment in the oil and gas sector.