Indonesia's Gas Production Declines Faster Than Consumption Over the Past Decade

Based on BP data, Indonesia's gas production in 2021 amounted to 59.29 billion cubic meters. This figure is down 0.41% compared to the previous year.

Consequently, national gas production has fallen for the tenth time in the last decade, as shown in the graph. Compared to 2012, Indonesian gas production decreased by 19.01 billion cubic meters (24.27%).

Meanwhile, Indonesian gas consumption in 2021 was 37.08 billion cubic meters. This figure is down 1.16% from the previous year. Compared to 2012, domestic gas consumption also fell by 5.89 billion cubic meters (13.71%).

Based on this data, the faster decline in gas production compared to consumption has narrowed Indonesia's gas balance to 22.21 billion cubic meters in 2021, compared to 35.33 billion cubic meters a decade ago.

For information, in 2005 the government implemented a conversion from kerosene to LPG gas in 2007. This program was successful, with most of the population currently using LPG gas fuel.

However, there is now a proposal to convert gas stoves to induction (electric) stoves. This proposal is due to the high level of misdirected gas subsidies that the government has been unable to resolve, causing gas subsidies to swell and burden the government budget.

One reason for the conversion from gas stoves to electric stoves is that the electricity supply of PT Perusahaan Listrik Negara (PLN) is always in oversupply.