PT PLN Energi Primer Indonesia (PLN EPI) has announced that the demand for gas used in electricity generation in Indonesia is expected to see a notable increase of 4.5% annually until 2034. This announcement comes at a time when the country is experiencing a rise in national electricity consumption, alongside accelerated electrification efforts in several sectors.
In a statement, PLN EPI's General Director, Rakhmad Diwanto, clarified that the electricity sector will be the main driver of energy growth in the country. This growth is expected to increase the share of electricity from 28% in 2025 to 38% of total primary energy needs in Indonesia by 2035.
Details of the Forecast
During the 11th Annual LNG Supply, Transport & Storage Forum 2026 held in Bali, Rakhmad indicated that the electricity sector will witness growth ranging from 4.6% to 5.4% annually, driven by electrification efforts in transportation, industry, and households, as well as the growth of data centers.
PLN expects national electricity production to rise significantly, with projections indicating it will double from 283.7 TWh in 2024 to approximately 581-584 TWh by 2034. Despite the anticipated increase in renewable energy sources, coal and natural gas will continue to play a crucial role in ensuring the reliability of the national electricity system.
Background & Context
Historically, Indonesia has heavily relied on coal and gas for power generation. With increasing global pressure to transition to renewable energy sources, the Indonesian government has begun taking serious steps to enhance the use of natural gas, particularly liquefied natural gas (LNG), as part of its energy strategy.
This strategy includes developing the necessary infrastructure to support gas usage, including gas storage projects and improving the transportation network. Indonesia is also seeking to reduce its dependence on traditional fossil fuels by promoting the use of natural gas as a cleaner energy source.
Impact & Consequences
PLN EPI anticipates that gas demand will rise from 1,748 BBTUD in 2026 to 2,490 BBTUD by 2034. LNG is expected to be the primary solution to compensate for the shortfall in domestic gas supplies through pipelines.
The need for LNG shipments is also projected to increase at a rate of 4.5% annually, with expectations that it will rise from 103 shipments in 2026 to 214 shipments by 2034.
Regional Significance
This increase in gas demand is indicative of a shift towards cleaner energy sources and the enhancement of energy infrastructure in Indonesia. The government's commitment to improving gas utilization reflects a broader trend in the region towards sustainable energy practices.
In conclusion, the anticipated growth in gas demand not only supports Indonesia's energy needs but also aligns with global efforts to transition to more sustainable energy solutions.