Indonesia to rethink natural gas export shares to boost domestic petrochemical sector

In Jakarta, energy and mineral resources minister Bahlil revealed that Indonesia plans to revisit its natural gas allocation ratios, which presently allocate roughly 30% of production for export and the rest for internal use. The upcoming assessment will focus on maximizing domestic consumption, particularly as a raw material for the country's expanding petrochemical industry. The policy shift supports the development of a petrochemical hub in East Kalimantan, highlighted by the inauguration of the JNE#6 gas project and the Maha-South Hub field.

Bahlil emphasized that downstream processing must keep pace with new upstream discoveries to secure a steady feedstock supply. While considering potential export adjustments to neighboring countries, the government will maintain respectful bilateral relations. The regional hub is also intended to spread economic growth beyond Jakarta, creating jobs and increasing local revenue.