PLN and Jera: LNG to play ‘critical’ role in meeting Indonesia’s gas supply needs

LNG will play a "critical" role in meeting Indonesia's supply needs as PLN EPI expects a near-term natural gas shortage, according to the unit of Indonesia’s state power company PLN and Japan’s power firm and LNG trader Jera.

The two firms announced on Monday the initial findings from their ongoing study on potential collaboration across Indonesia’s LNG value chain.

The study was launched under the joint development study agreement signed in June 2025, and the current findings highlight the “critical need to build a robust LNG framework that strengthens Indonesia’s energy resilience, supports its transition towards a lower-carbon future, and meets rising energy demand.”

According to the duo, initial findings indicate “significant” opportunities to enhance LNG procurement and supply processes, as Indonesia faces declining domestic gas production and increasing demand from the power sector’s net zero transition.

Jera and PLN EPI are assessing various collaboration models that leverage Jeras global LNG value chain expertise and PLN EPI’s deep local market knowledge to build a “more flexible and resilient LNG supply chain that supports energy security and sustainability for Indonesia.”

The study also identifies opportunities to strengthen Indonesia’s distribution network and improve energy delivery efficiency to key regions.

It will further examine options for shared infrastructure and explore new business opportunities to enhance energy security and optimized resource use, the duo said.

The initial insights provide a “strong” foundation for continued collaboration between Jera and PLN EPI.

“Both companies have agreed, during a workshop held on October 20, 2025, to advance the study and will continue to assess the economic, technical, and logistical aspects of these opportunities to ensure a reliable and secure energy future for Indonesia,” they said.

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