Jakarta, Klinik Farma – It is believed that the Indonesian government needs to reconsider its plan to ban exports abroad. The reason is that there is still an imbalance between supply and demand in the country.
Elan Biantoro, General Secretary of the Association of Oil and Gas Companies (Aspermigas), said that Indonesia still has great potential to exploit its oil and gas reserves. However, initially the conditions are different: many of these “treasures” were located in the western part of Indonesia, now they have moved to eastern Indonesia.
Meanwhile, the country’s natural gas consumption is mainly dominated by the western part of Indonesia. Therefore, the gas infrastructure is the key to a more optimal use of gas in the country.
“The industry is growing so fast, but unfortunately our industry is also focused on the western part of Indonesia. Meanwhile, Indonesia’s gas reserves in the western part are starting to run low,” he told Klinik Farma Energy Corner on Tuesday (Aug. 8). 2023).
Elan does not deny that gas production in western Indonesia does exist, but it is not yet able to meet domestic demand for gas. The largest gas reserves are currently located in central and eastern Indonesia such as Kalimantan, Sulawesi, Maluku and Papua.
“Demandit is more in western Indonesia. It’s an infrastructure disparity, how those who need gas in the West can get what they need at an economical price for their industry, but the source of the gas is in the Middle and East,” he added.
[Gambas:Video CNBC]
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