Investasi LNG Indonesia, Jalan Mundur Komitmen Iklim
Summary
This report by Trend Asia and debtWatch Indonesia argues that the promotion of Liquefied Natural Gas (LNG) as a "transition fuel" in Indonesia, supported by Multilateral Development Banks (MDBs), undermines the Paris Agreement and locks the country into long-term fossil fuel dependency. The document details the environmental, social, and governance risks associated with gas infrastructure, including methane emissions, corruption, and human rights violations.
Key insights
- The Indonesian government promotes gas as a transition energy solution to move away from coal, but this strategy is criticized for contributing significantly to greenhouse gas emissions, particularly through methane leaks in the supply chain. Methane emissions from fossil fuels are responsible for approximately 30% of the global temperature increase since the industrial revolution.
- Multilateral Development Banks (MDBs) such as the World Bank Group (WBG) and Asian Development Bank (ADB) are accused of contradicting their climate commitments by continuing to support gas projects. While some have set targets for 'Paris Alignment' of their funding by 2023-2025, they often use 'technical assistance' or 'policy support' to facilitate gas infrastructure, which the report claims validates new gas projects.
- Gas infrastructure development in Indonesia is linked to significant governance failures and corruption. Examples include the prosecution of former Pertamina CEO Karen Agustiawan for LNG procurement causing state losses of approximately USD 140 million (Rp 2.1 trillion), and procedural irregularities in the Cirebon-Semarang gas pipeline project.
- The report identifies severe environmental and social impacts from gas and oil projects, including the contamination of 1.6 million cubic meters of land with hazardous waste (B3) by PT Chevron Pacific Indonesia in the Rokan Block, and the displacement of farmers and fishers for the Jawa-1 power plant.
- Gas exploration in Indonesia is subject to geopolitical tensions and human rights concerns. This includes maritime disputes with China in the North Natuna Sea (Blok Tuna) and with Malaysia in the Ambalat Block, as well as historical allegations of human rights abuses by the Indonesian military linked to ExxonMobil's operations in the Arun field in Aceh.
- Indonesia's commitment to the Global Methane Pledge to reduce methane emissions by 30% by 2030 is viewed as lacking concrete action, especially as the government plans to replace coal and oil power plants with gas through 2030, as outlined in the RUPTL 2021-2030.
Cite the original document
- APA
- Gultom, D., Setiawan, A. A., Indri, N., & Amali, Z. (2025). Investasi LNG Indonesia, Jalan Mundur Komitmen Iklim. Trend Asia. https://trendasia.org/wp-content/uploads/2025/03/Investasi-LNG-Indonesia-Jalan-Mundur-Komitmen-Iklim-High-Res.pdf
- Chicago
- Gultom, Diana, Alfa Arifia Setiawan, Novita Indri, and Zakki Amali. Investasi LNG Indonesia, Jalan Mundur Komitmen Iklim. Trend Asia, 2025. https://trendasia.org/wp-content/uploads/2025/03/Investasi-LNG-Indonesia-Jalan-Mundur-Komitmen-Iklim-High-Res.pdf.
- Wikipedia
- {{cite report |last1=Gultom |first1=Diana |last2=Setiawan |first2=Alfa Arifia |last3=Indri |first3=Novita |last4=Amali |first4=Zakki |title=Investasi LNG Indonesia, Jalan Mundur Komitmen Iklim |publisher=Trend Asia |date=March 2025 |url=https://trendasia.org/wp-content/uploads/2025/03/Investasi-LNG-Indonesia-Jalan-Mundur-Komitmen-Iklim-High-Res.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{gultom2025investasi, author = {Gultom, Diana and Setiawan, Alfa Arifia and Indri, Novita and Amali, Zakki}, title = {{Investasi LNG Indonesia, Jalan Mundur Komitmen Iklim}}, institution = {Trend Asia}, year = {2025}, month = mar, url = {https://trendasia.org/wp-content/uploads/2025/03/Investasi-LNG-Indonesia-Jalan-Mundur-Komitmen-Iklim-High-Res.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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