Development of Natural Gas Infrastructure to Enhance National Energy Security in Indonesia

Abstract

The current use of energy in Indonesia highly still depends on fossil-derived energy. Thus, policies to reduce the use of fossil energy towards the use of new and renewable energy (NRE), which is more environmentally friendly, receive great concern. The government encourages the use of low-carbon technology following up the Paris Agreement to reduce greenhouse gas (GHG) emissions by 29% (without assistance) and by 41% (with international assistance) under Business as Usual (BAU) by 2030. However, accelerating the utilization of renewable energy still faces some obstacles because the economic price of NRE is still more expensive than that of fossil energy. The most likely transition policy is to substitute the use of oil and fuel to natural gas through improving natural gas infrastructure. This transition is following the Sustainable Development Goal (SDG) which guides the achievement of global goals until 2030, namely to ensure access to affordable, reliable, sustainable, and modern energy for all. The development of natural gas infrastructure is currently in an early stage (point to point scheme) and is expected to develop into a hub and spoke scheme towards multiple networks. The more developed infrastructure will further enhance national energy security in the long run.