Indonesian Energy sector

[Indos]

Java–Sumatra Gas Pipeline Network Moves Forward as Indonesia Accelerates National Energy Connectivity​

Firda Dwi Muliawati, CNBC Indonesia
29 June 2026 16:45

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JAKARTA — Indonesia's Ministry of Energy and Mineral Resources is accelerating the development of its national natural gas transmission network to connect Java and Sumatra, extending the country's integrated gas infrastructure from Java to **Banda Aceh>. The initiative aims to strengthen domestic gas distribution and improve energy security for industrial consumers.

Minister of Energy and Mineral Resources Bahlil Lahadalia said the government is currently prioritizing construction of the Dumai–Sei Mangkei (Dusem) gas transmission pipeline, which will serve as a key link in Indonesia's expanding national gas network.

"The project is currently under construction. Parts of it have already been completed, while the remaining sections are scheduled for completion in 2027. We are building the Dumai–Sei Mangkei pipeline to connect Sumatra with Java," Bahlil said following a press conference at the Indonesian House of Representatives on Monday.

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Expanding Pipeline Capacity​

In addition to constructing new pipeline segments, the government is also expanding the capacity of existing transmission lines to enable more efficient interregional gas distribution.

According to Bahlil, the upgraded network will allow surplus natural gas from one region to be redirected to areas with higher demand.

"We are increasing the pipeline capacity. If there is surplus gas in Sumatra, it can be delivered to Java. Likewise, if East Java has excess supply, it can be transmitted to West Java," he explained.

Nationwide Gas Connectivity by 2027​

The integrated transmission network is expected to be fully completed in 2027, creating a continuous gas pipeline system connecting Sumatra and Java.

Bahlil also confirmed that construction is underway on the East Java–West Java transmission pipeline to further strengthen domestic gas distribution.

Supporting Future Gas Supply from the Andaman Block​

The project builds upon the completion of several strategic pipeline developments.

The Cirebon–Semarang Phase 1 (Cisem-1) gas transmission pipeline was completed in 2023 and is currently supplying natural gas to the Batang Integrated Industrial Estate in Central Java.

Meanwhile, Cisem-2 has recently entered operation, enabling gas transportation from East Java to West Java.

Once the Dusem pipeline is completed, the integrated network will also be capable of transporting future gas production from the Andaman Block, one of Indonesia's largest recent offshore natural gas discoveries.

According to CNBC Indonesia, the Dumai–Sei Mangkei pipeline carries an estimated investment value of Rp6.6 trillion and is designed to transport natural gas from the Agung and Andaman working areas in Aceh to industrial consumers across Sumatra and Java, significantly enhancing Indonesia's long-term energy security and industrial competitiveness.

Pipa Gas Jawa-Sumatra Bakal Tersambung, Ini Progresnya

Pipa gas Jawa-Sumatra bakal tersambung

www.cnbcindonesia.com

 

[Indos]

Indonesia Expands Biofuel Strategy Beyond Palm Oil to Strengthen Energy Security​

Verda Nano Setiawan, CNBC Indonesia
30 June 2026 10:35



JAKARTA — Indonesia is preparing to significantly diversify its bioenergy feedstocks beyond palm oil as the government seeks to strengthen national energy security and reduce dependence on fossil fuel imports.

The Ministry of Energy and Mineral Resources plans to expand the use of various agricultural crops for biofuel production, ranging from bioethanol for gasoline blending to sustainable aviation fuel (SAF).

Director General of New, Renewable Energy and Energy Conservation (EBTKE), Eniya Listiani Dewi, said Indonesia has already established the implementation roadmap for mandatory biodiesel blending under Ministerial Regulation No. 4 of 2025.

"The biodiesel mandate is already in place. Through Ministerial Regulation No. 4 of 2025, we have established the implementation stages," Eniya said during the CNBC Indonesia Energy Forum in Jakarta.

Expanding Beyond Palm Oil​

While Indonesia's biodiesel program has been built primarily on crude palm oil (CPO), the government is now developing alternative feedstocks for other types of biofuels.

According to Eniya, crops such as corn, cassava, and sugarcane are being explored as feedstocks for bioethanol, which can partially replace gasoline consumption through ethanol blending programs.

Meanwhile, coconut is also being studied as a potential feedstock for producing bio-based aviation fuel (bio-avtur).

"In the future, we will also utilize other crops such as coconut for sustainable aviation fuel. Indonesia has tremendous potential to increase its 'oil production' from plants," she said.

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Pertamina Pursues Multi-Feedstock Bioethanol Strategy​

At the same forum, Pertamina New & Renewable Energy (Pertamina NRE) announced a comprehensive strategy to accelerate Indonesia's bioethanol industry through a multi-feedstock, multi-generation, and multi-region approach.

President Director John Anis said Indonesia cannot rely on a single feedstock if it aims to implement higher ethanol blending mandates such as E10 or E20 gasoline.

"We want to replicate the success of the B50 biodiesel program for ethanol. The journey will be longer, but we remain committed. Our strategy consists of three pillars: multi-feedstock, multi-generation, and multi-region," John said.

Molasses Supply Remains Limited​

Currently, molasses, a by-product of sugar production, is considered the most mature feedstock for bioethanol because it does not directly compete with food consumption.

However, its production capacity remains insufficient to meet Indonesia's future bioethanol demand.

According to Pertamina NRE, implementing an E10 gasoline blend could require between 10 million and 20 million kiloliters of bioethanol annually, far exceeding the country's current molasses supply.

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New Bioethanol Facility Under Development​

To expand domestic production capacity, Pertamina NRE is partnering with PT Sinergi Gula Nusantara (SGN) to build a new bioethanol facility at the Glenmore Sugar Mill in Banyuwangi.

The facility will utilize molasses as its primary feedstock and is expected to have an annual production capacity of approximately 33,000 kiloliters.

The broader initiative reflects Indonesia's long-term strategy to diversify renewable fuel sources, strengthen domestic energy resilience, and gradually reduce dependence on imported petroleum products while creating greater value from the country's agricultural resources.

RI Berpotensi Panen Produksi "BBM" dari Tanaman, Tak Cuma Sawit!

Tak hanya sawit, Indonesia memiliki potensi panen produksi dari sumber biofuel

www.cnbcindonesia.com