Bahlil: No More Cuts to Gas Export Quotas in 2026

Energy and Mineral Resources Minister Bahlil Lahadalia emphasized that there will be no further cuts to gas export quotas for contracts already in place in 2026, in order to provide business certainty for Contractors under Cooperation Contract Working (KKKS) even as the government balances domestic energy needs.

The minister explained that the government understands the dynamics faced by businesses regarding export contracts in previous years. He confirmed that all export requests that have been contracted abroad will be approved without administrative obstacles from the government.

‘This is my promise to you all: in 2025 it happened; the experience that one year of governance with President Prabowo led to such outcomes, but in 2026 there will be no more cuts to export quotas for either the market or those contracted overseas,’ he said at The 50th IPA Convention & Exhibition (Convex) at ICE BSD, Tangerang Regency, on Wednesday, 20 May 2026.

The decision is intended to remove concerns among national gas producers about corporate commitments to global buyers. Lahadalia stressed that energy authorities will seek alternative strategies to meet domestic gas needs without disturbing existing export contracts.

‘So there is no need to worry any more; I have approved all exports. Everything has been signed; there will be no more. Let us focus on our domestic needs,’ he added.

To anticipate domestic needs in the future, the government is directing state-owned companies such as PLN and PGN to prepare to absorb production from new gas fields. The Badan Pengelola Investasi Danantara will also be involved to ensure there is a standby domestic buyer (offtaker) for upcoming gas discoveries.

‘To the new developments, there are Inpex and several K3S projects emerging for gas; if they are marketed abroad and then slow, I have asked Danantara, in this case PLN, PGN, and other companies to secure the offtaker domestically; we will buy,’ he stated.

The government hopes these efforts will create a more stable and measurable upstream oil and gas investment climate for global investors. The government is committed to continually refining regulations so that KKKS operations can run smoothly alongside its target to increase national gas production.

‘To ensure there is an offtaker, so that everything can run,’ he concluded.

(wia)