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

 

[Indos]

To Save Land, 10,000 Hectares of Reservoir Surface to Be Converted into Floating Solar Power Plants​

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Newly Karian Dam, next to Jakarta, prepared as one of dams to supply water for Greater Jakarta region


JAKARTA — PT PLN (Persero) plans to utilize 10,000 hectares of reservoir surface for the development of floating solar power plants (Floating PLTS) as part of Indonesia's strategy to achieve 100 gigawatts (GW) of solar power capacity, in line with the directive of President Prabowo Subianto.

President Director of PLN, Darmawan Prasodjo, said that deploying floating solar power plants on reservoirs offers a practical solution to the limited availability of land for large-scale renewable energy projects.

The company is coordinating closely with relevant ministries to accelerate the utilization of state-owned reservoir assets for renewable energy development.



Photo: Illustration of the 192 MWp Cirata Floating Solar Power Plant (PLTS) in Purwakarta Regency, West Java. As the largest floating solar power plant in Southeast Asia, the project demonstrates PLN’s ability to turn the energy transition into a strategic force for strengthening Indonesia’s national energy security. (Photo: PT PLN Persero)

"In addition, we plan to develop floating solar power plants equipped with Battery Energy Storage Systems (BESS) across reservoirs covering approximately 10,000 hectares. In Java alone, this would add around 10 gigawatt-peak (GWp) of solar capacity," Darmawan said during a hearing with Commission XII of the House of Representatives.

10 GW of Floating Solar Capacity​

PLN estimates that utilizing 10,000 hectares of reservoir surface could generate approximately 10.3 gigawatt-peak (GWp) of solar power capacity.

To ensure reliable electricity supply, the floating solar facilities will be integrated with Battery Energy Storage Systems (BESS) totaling 30 gigawatt-hours (GWh) of storage capacity.

"Since the reservoirs already exist, the land is readily available. Of course, we will work closely with the Ministry of Public Works and the Ministry of Energy and Mineral Resources."

Lower Costs Through State-Owned Reservoirs​

According to Darmawan, solar power projects combined with battery storage are highly sensitive to land acquisition costs.

He explained that every increase in land prices directly affects the cost of electricity generation.

"PLTS combined with BESS is extremely sensitive to land prices. If land costs Rp200,000 per square meter, electricity costs increase by about one US cent per kilowatt-hour. If land prices reach Rp600,000 per square meter, electricity costs rise by approximately three US cents per kilowatt-hour."

By utilizing state-owned reservoirs, PLN expects to significantly reduce project costs while improving the economic competitiveness of renewable electricity.

"With land already provided by the government and by utilizing reservoirs, solar power combined with battery energy storage becomes a highly competitive solution from an economic standpoint."

Additional 28,000 Hectares of Land Prepared​

Beyond floating solar installations, the government is also preparing approximately 28,000 hectares of land across Java to support the national 100 GW solar power program.

PLN is working closely with the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) and the Ministry of Energy and Mineral Resources (ESDM) to identify suitable project sites.

According to Darmawan, around 8,500 hectares of the proposed land have already been identified and could immediately support approximately 8.5 GWp of solar generation capacity.

These land-based solar projects will also be integrated with Battery Energy Storage Systems (BESS) to improve grid stability and support Indonesia's long-term transition toward clean and domestically sourced energy.

Hemat Lahan, 10.000 Hektare Permukaan Waduk Akan Disulap Jadi PLTS

PT PLN (Persero) berencana memanfaatkan 10.000 hektare (ha) permukaan waduk untuk PLTS terapung.

www.cnbcindonesia.com