Domestic LNG Production Sufficient for Near-Term Needs

Indonesia is currently meeting its Liquefied Natural Gas (LNG) demands for April and May 2025 entirely through domestic production,according to the Special Work Unit Implementing Upstream Oil and Gas Business Activities (SKK Migas).This strategy underscores Indonesia’s commitment to maximizing its internal resources before considering imports.

Djoko Siswanto, Head of SKK Migas, confirmed that no LNG imports have been necessary thus far. For (LNG requests) April-May alhamdulillah can be fulfilled domestically, he stated during the launch of the Olng Feed Masela project in Jakarta.

Evaluating Future Import Options

While indonesia is presently self-sufficient in LNG, the possibility of future imports remains under evaluation. The nation intends to continue prioritizing domestic gas resources, with import options only considered if internal supplies prove insufficient.

If it is indeed needed later we will see it being evaluated, while we are still trying to fulfill the LNG from within the country, Siswanto explained, highlighting the ongoing assessment of potential import needs.

Domestic Gas Consumption Trends and Export Strategy

Data from the Ministry of Energy and Mineral Resources reveals a nuanced picture of Indonesia’s natural gas usage. In 2024, domestic consumption totaled 3,881 British British Thermal Units Per Day (BBTUD), a 4.76% decrease compared to the 4,075 BBTUD recorded in 2023. Conversely,natural gas exports saw an increase,reaching 1,905 BBTUD,a 6.19% rise from the 1,794 BBTUD in 2023.

Despite the dip in domestic gas absorption compared to the previous year, Minister of energy and Mineral Resources Bahlil Lahadalia has announced plans to redirect gas pipelines currently exporting to singapore for domestic use. This decision is driven by projections indicating important growth in domestic gas demand in the coming years.

Now 2024, our domestic is like this now. So, exports and domestic are now more domestic, Minister lahadalia stated during a press conference on the performance of the ESDM sector in 2024.

This strategic shift reflects Indonesia’s commitment to prioritizing its internal energy needs and ensuring a stable supply for its industries and consumers.this decision aligns with broader trends in resource nationalism, where countries increasingly seek to leverage their natural resources for domestic benefit.

“This is the one to Singapore,huh? This is what we tend to divert to Batam? this is export to Singapore,”
Minister of Energy and Mineral Resources Bahlil Lahadalia

Breakdown of Domestic Gas Consumption in 2024

the following details the distribution of domestic gas consumption across various sectors in 2024:

• Industry: 1,473 BBTUD (40%)
• Electricity: 707 BBTUD (19%)
• Domestic LNG: 695 BBTUD (19%)
• Fertilizer: 690 BBTUD (19%)
• Domestic LPG: 77 BBTUD (2%)
• Urban Gas: 15.48 BBTUD (1%)
• Gas Fuel: 3.95 BBTUD

The Perfect Storm: How Natural Disasters and Unfair Trade Practices Threaten Textile Businesses

Indonesian textile entrepreneurs are expressing serious concerns about the combined impact of recent flooding and the influx of illegal textile products. These challenges are creating a precarious situation for businesses already navigating a complex global market.

Devastating floods Compound Existing Economic Pressures

Recent severe flooding across key textile production regions has disrupted supply chains, damaged infrastructure, and resulted in significant financial losses for many businesses. The floods have not only halted production but also jeopardized existing inventory and future orders.

“The floods have been catastrophic,washing away not just our equipment and materials,but also our livelihoods.”

A local textile business owner

The impact of natural disasters on the textile industry is a recurring concern. for example,the 2024 floods in Jakarta caused an estimated $50 million in damages to textile factories,highlighting the vulnerability of the sector to climate-related events.

The Shadow Economy: Illegal Textile Imports Undermine Fair Competition

Compounding the challenges posed by natural disasters is the persistent issue of illegal textile imports. these products, often of lower quality and sold at substantially reduced prices, create unfair competition for legitimate businesses that adhere to regulations and ethical production standards.

According to a recent report by the Indonesian Textile Association (API), illegal textile imports account for approximately 20% of the domestic market, costing the industry billions of dollars annually. This illicit trade not only harms local businesses but also deprives the government of much-needed tax revenue.

We are competing against ghosts. How can we possibly maintain our prices and quality when illegal products are flooding the market at a fraction of the cost?

A representative from the Indonesian Textile Manufacturers Association

Looking Ahead: Strategies for Resilience and Sustainability

The Indonesian textile industry must adopt a multi-faceted approach to overcome these challenges. This includes investing in flood mitigation infrastructure, strengthening enforcement against illegal imports, and promoting enduring and ethical production practices.

Moreover, collaboration between government, industry stakeholders, and international organizations is crucial to develop effective strategies for building resilience and ensuring the long-term viability of the Indonesian textile sector. This includes exploring opportunities for diversification, innovation, and value-added production to enhance competitiveness in the global market.