Bahlil Assures There Will Be No Cuts to Gas Export Quota This Year
GAS INDUSTRY NEWS
Saadatuddaraen | Syahrizal Budi Putranto (rri.co.id)
5/21/2026
The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, guaranteed that there would be no further cuts to gas export quotas. According to him, the government would honor all gas export contracts agreed to by oil and gas cooperation contract contractors (KKKS).
Bahlil acknowledged that last year there had been some dynamics related to the fulfillment of gas export contracts. At that time, domestic LNG supply experienced a deficit due to soaring demand.
However, on the other hand, natural gas working area operators had already entered into export contracts. The reason was that during the development planning process, the domestic market was projected to be unable to absorb the LNG produced.
The government then decided to postpone several export LNG cargoes to meet the domestic market. Now, according to Bahlil, the government has agreed to export the previously delayed LNG.
"I promise that in 2026 there will be no further cuts to export quotas," he said in Tangerang on Thursday, May 21, 2026. This includes those already under contract for export abroad.
Bahlil emphasized that the government will seek alternative solutions to meet domestic gas needs without disrupting existing export contracts. According to him, this is crucial to maintaining the trust of investors and international partners in Indonesia.
"Let us think hard about meeting domestic needs," he said. "So, there's no need to worry anymore; I've already approved everything for export."
Bahlil is even ready to provide certainty regarding buyers if the KKKS (Contract Contractors) continue to develop their potential gas reserves. According to him, the government will prepare potential gas buyers from several sectors that can absorb large quantities.
This way, he hopes that KKKS will not hesitate to invest and continue the project. "If it's difficult to market abroad, I've asked PLN, PGN, and several other companies to buy," he said.
Bahlil also assured that the upstream oil and gas sector will not be affected by the latest policy regarding the export of natural resource commodities. "The President has decided that this regulation does not apply to the upstream oil and gas sector," he said.
Therefore, oil and gas business mechanisms and exports will continue as usual, so business actors need not worry. Meanwhile, the government remains open to providing fiscal incentives for oil and gas projects deemed uneconomical.
However, Bahlil emphasized that incentives will only be provided for sectors that are economically in need of government support. "If they're not doing well, we'll help, but if they're doing well, we'll hold off a bit," he said.
The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, guaranteed that there would be no further cuts to gas export quotas. According to him, the government would honor all gas export contracts agreed to by oil and gas cooperation contract contractors (KKKS).
Bahlil acknowledged that last year there had been some dynamics related to the fulfillment of gas export contracts. At that time, domestic LNG supply experienced a deficit due to soaring demand.
However, on the other hand, natural gas working area operators had already entered into export contracts. The reason was that during the development planning process, the domestic market was projected to be unable to absorb the LNG produced.
The government then decided to postpone several export LNG cargoes to meet the domestic market. Now, according to Bahlil, the government has agreed to export the previously delayed LNG.
"I promise that in 2026 there will be no further cuts to export quotas," he said in Tangerang on Thursday, May 21, 2026. This includes those already under contract for export abroad.
Bahlil emphasized that the government will seek alternative solutions to meet domestic gas needs without disrupting existing export contracts. According to him, this is crucial to maintaining the trust of investors and international partners in Indonesia.
"Let us think hard about meeting domestic needs," he said. "So, there's no need to worry anymore; I've already approved everything for export."
Bahlil is even ready to provide certainty regarding buyers if the KKKS (Contract Contractors) continue to develop their potential gas reserves. According to him, the government will prepare potential gas buyers from several sectors that can absorb large quantities.
This way, he hopes that KKKS will not hesitate to invest and continue the project. "If it's difficult to market abroad, I've asked PLN, PGN, and several other companies to buy," he said.
Bahlil also assured that the upstream oil and gas sector will not be affected by the latest policy regarding the export of natural resource commodities. "The President has decided that this regulation does not apply to the upstream oil and gas sector," he said.
Therefore, oil and gas business mechanisms and exports will continue as usual, so business actors need not worry. Meanwhile, the government remains open to providing fiscal incentives for oil and gas projects deemed uneconomical.
However, Bahlil emphasized that incentives will only be provided for sectors that are economically in need of government support. "If they're not doing well, we'll help, but if they're doing well, we'll hold off a bit," he said.
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