Publish What You Pay (PWYP) revealed that natural gas reserves will be threatened with exhaustion within 43 years. This can happen if there are no additional new proven reserves.

Referring to the study data entitled The Future and Challenges of National Natural Gas Management published in January 2019, PWYP estimates Indonesia proved reserves to be 102.9 TSCF at the end of 2017. Most of the proven gas reserves are located offshore, scattered from the Natuna Sea, West Papua, southern Sumatra and Maluku Sea.

This amount is equivalent to 1.5% of the total proven gas reserves in the world. Indonesia is ranked 14 out of 15 in the world.

Assuming the same production as 2017, which is 6.6 BCF per day or 2.401 BCF per year, Indonesia’s natural gas reserves will last until 2061. This prediction also refers to BP Statistical Review data for 2018.

Former Chairman of the Presidential Advisory Council Emil Salim said that in order for the resources not to run out, it is necessary to search for new oil and gas reserves through exploration activities. He also highlighted that the use of natural gas in Indonesia is still not optimal due to limited infrastructure. “The location of the gas is in the eastern area, where the gas pipeline infrastructure is still difficult,” he said.

From PWYP’s records, Indonesia needs at least funds to build gas infrastructure with an estimated total investment of US $ 24.3 billion. However, there are constraints in development such as no incentive for business entities to build gas infrastructure.

Another obstacle is changing policies or regulations regarding the obligation to build pipes for business licenses. In addition, PWYP assesses that investors who will build infrastructure are afraid if after building the infrastructure they face difficulties in obtaining gas allocation (supply) which in fact will disrupt the profitability of an investment.