THE TROUBLE WITH GAS IN INDONESIA

The document examines the World Bank Group's (WBG) role in expanding fossil gas infrastructure in Indonesia, asserting that this strategy locks the country into long-term greenhouse gas emissions and dependency on fossil fuels. It highlights contradictions between WBG strategies, such as the Country Partnership Framework 2021-24 and the Indonesia Economic Prospects Report, and global climate goals like the IEA's Net Zero Emissions by 2050 roadmap. The report specifically cites the WBG's support for the BP Tangguh project and warns against 'false solutions' like Carbon Capture Utilisation and Storage (CCUS) and coal gasification.

• The World Bank Group's Country Partnership Framework (CPF) 2021-24 for Indonesia promotes the "acceleration of deployment of natural gas and biogas" and aims to improve the investment climate for private investors through regulatory reform and gas infrastructure planning, which may include pipelines, ports, and LNG terminals.
• The World Bank's 2018 pledge to stop financing upstream oil and gas is undermined by indirect financing through Financial Intermediaries (FI), which make up over half of the International Finance Corporation's (IFC) total portfolio and allow for the private financing of fossil fuels.
• The World Bank's December 2021 Indonesia Economic Prospects Report (IEP) proposes a decarbonisation scenario that would double Indonesia's installed gas capacity between 2021 and 2040, a projection that contradicts the International Energy Agency's Net Zero Emissions by 2050 roadmap.
• World Bank investments have historically locked Indonesia into gas; for example, a $500m First Indonesia Sustainable and Inclusive Energy DPF loan led to a twelve-fold increase in gas contracted by PLN for the Jawa 2 power plant from BP’s Tangguh project between 2016 and 2020.
• The document identifies coal gasification and Carbon Capture Utilisation and Storage (CCUS) as unproven or problematic technologies that risk justifying continued fossil fuel exploitation. Specifically, a Renewable Energy Bill (RUU EBT) debated in April 2022 classifies 'coal gasification' as 'new energy'.

APA

Trend Asia (2022). THE TROUBLE WITH GAS IN INDONESIA. https://trendasia.org/wp-content/uploads/2022/04/The-Trouble-with-Gas-in-Indonesia-Final.pdf

Chicago

Trend Asia. THE TROUBLE WITH GAS IN INDONESIA. 2022. https://trendasia.org/wp-content/uploads/2022/04/The-Trouble-with-Gas-in-Indonesia-Final.pdf.

Wikipedia

{{cite report |author=Trend Asia |title=THE TROUBLE WITH GAS IN INDONESIA |date=April 2022 |url=https://trendasia.org/wp-content/uploads/2022/04/The-Trouble-with-Gas-in-Indonesia-Final.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{trendasia2022trouble, author = {{Trend Asia}}, title = {{THE TROUBLE WITH GAS IN INDONESIA}}, institution = {Trend Asia}, year = {2022}, month = apr, url = {https://trendasia.org/wp-content/uploads/2022/04/The-Trouble-with-Gas-in-Indonesia-Final.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }