The 2025–2034 Electricity Supply Business Plan (RUPTL) still includes fossil fuels in the national power generation mix, totaling 16.6 GW, with 10.3 GW of that coming from gas-fired power plants. Although gas is often considered “cleaner” than coal, CERAH’s analysis shows that the life-cycle emissions of gas remain high—primarily due to methane leakage during extraction, liquefaction, and LNG distribution processes. The carbon dioxide emissions from these gas plants are estimated to reach 10–11 million tons of CO₂ per year, potentially hindering the achievement of the Net Zero Emission 2060 target and prolonging Indonesia’s dependence on fossil energy.
From a fiscal perspective, the expansion of gas-fired power plants poses a significant burden on the state budget. The cost of gas procurement by PLN, combined with the gap between the Special Natural Gas Price (HGBT) and market prices—which is subsidized by the government—is projected to total IDR 155.8 trillion annually by 2034. At the same time, the development of gas infrastructure, such as LNG terminals, storage tanks, and pipeline networks, will require trillions of rupiah in investment, yet remains at risk of becoming stranded assets due to low utilization and the increasing competitiveness of renewable energy.
This briefing note aims to provide a critical analysis of the role of gas in the 2025–2034 RUPTL and to advocate for a strategic and progressive review of national energy policy, so that Indonesia avoids both fiscal burdens and climate traps associated with long-term fossil fuel investments.
