Investasi LNG Indonesia, Jalan Mundur Komitmen Iklim

The report argues that promoting LNG as a 'transition fuel' in Indonesia creates a long-term dependency on fossil fuels and contradicts climate commitments. It highlights that Multilateral Development Banks (MDBs), including the World Bank Group and ADB, continue to support gas infrastructure through technical assistance and policy loans despite their public Paris Alignment pledges. The document details numerous negative impacts of gas projects, including corruption in LNG procurement, human rights violations in Aceh, and environmental disasters such as the PHE ONWJ oil spill in Karawang. It concludes that gas is not a clean alternative due to high methane emissions and calls for an immediate shift to truly renewable energy.

• Multilateral Development Banks (MDBs) such as the World Bank Group (WBG) and Asia Development Bank (ADB) are accused of hindering Indonesia's ability to meet Paris Agreement commitments by funding gas projects, which locks the country into fossil fuel dependency.
• Despite public commitments to 'Paris Alignment', MDBs use ambiguities to continue funding gas. For example, the World Bank's IFC provided approximately USD 3.7 billion in trade finance for oil and gas in 2022, and the ADB has approved around USD 4.7 billion for gas projects since the Paris Agreement.
• Indonesia's gas infrastructure requires massive investment, estimated at USD 32.42 billion by 2025, covering gas pipelines (USD 8.5 billion), LNG and regasification (USD 8 billion), city gas networks (USD 2.5 billion), gas filling stations (USD 1.3 billion), and LPG infrastructure (USD 0.42 billion).
• The report identifies severe governance failures and corruption in the gas sector, citing a case where former Pertamina CEO Karen Agustiawan was named a suspect for LNG procurement (2011-2021) that caused state losses of approximately USD 140 million (Rp 2.1 trillion).
• Gas projects have been linked to human rights abuses and geopolitical tensions, including allegations that ExxonMobil used Indonesian soldiers who committed torture and killings of civilians in the Arun Field in Aceh, and maritime disputes with China in the North Natuna Sea (Blok Tuna).
• Environmental damage is widespread, including 1.6 million cubic meters of B3 hazardous waste contamination by PT Chevron Pacific Indonesia in the Rokan Block and a 2019 oil and gas spill by PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ) in Karawang that damaged marine ecosystems.
• The report challenges the 'transition fuel' narrative, stating that methane emissions from fossil fuels are responsible for approximately 30% of global temperature rise since the industrial revolution and are 86 times more potent than CO2 over a 20-year period.

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} }