The Indonesian government plans to add 80 GW of electricity capacity until 2040 in the new RUPTL, consisting of 60 GW of renewables and 20 GW of gas. The government is utilizing the energy transition moment to promote gas as an alternative to coal.
In addition to energy subsidies guaranteed by the government, gas plants also receive special incentives in the form of a maximum gas price of US$6 per MMBtu or Specific Natural Gas Price (HGBT) stipulated in Minister of Energy and Mineral Resources Regulation No. 10/2020. As a result, the government must bear the price difference from gas producers, which is not cheap.
So, what is the impact of gas use on finances and the future of energy transition in Indonesia?
