Indonesia has abundance natural gas reserves, but less in consumption. According to a recent World Bank study, a greater use of natural gas can help the Indonesian government reach its target of reducing greenhouse gas emissions by 26 percent by 2020.
The study is part of Winds of Change: East Asia’s Sustainable Energy Future, a study funded by the Australian government through AusAID. It also suggests that a shift in emphasis from coal to renewable energy would help quicken the pace of Indonesia’s move to a more environmentally sustainable energy path.
Instead of natural gas, Indonesia is known as high-calorie coal exporters. Gov’t of Indonesia currently builds more coal powered power plants to optimize its domestic use of coal as well as increasing its capacity to address growing electricity demand. Largest geothermal resources also found in Indonesia.
