Indonesia Natural Gas Reducing 50% of Carbon Emissions

Jan 19, 2023 | Sustainability

Indonesia has reduced its carbon emissions by 50% since the 1990s, but it’s a little-known fact that they’re doing it with natural gas. In this article, you will get information about Indonesia Natural Gas reducing 50% of carbon emissions by using it in a data center operations.

Indonesia is considered one of the world’s largest coal and oil producers. But even with all that, they’ve managed to reduce their carbon emissions by half, mainly due to their increased use of natural gas.

Natural gas produces about 40% to 50% less CO2 than coal for electricity production and about 70% less CO2 for generating heat. Therefore, if you can substitute a fuel like coal with natural gas, you can cut down on your overall carbon footprint. And that’s precisely what Indonesia has been doing since the 1990s.

Indonesia Natural Gas Reserves Available for the Next 800 Years

In the U.S., the use of natural gas has increased in recent years due to hydraulic fracturing, or fracking. Fracking, which involves injecting pressurized amounts of chemicals into the ground to release natural gas trapped within rock formations, has come under increased scrutiny as more research is conducted on its potential effects on the environment and human health. In Indonesia, natural gas extraction avoids such controversy, as no fracking techniques are used in the country’s extraction process.

According to the U.S. Energy Information Administration, Indonesia has one of the largest natural gas reserves in the world, accounting for about 10 percent of global reserves. Most of this reserve is located offshore, with more than 40 fields in production off Java and Sumatra islands alone.

The Indonesian Government is planning to use natural gas from Indonesia’s gas reserve for 800 years to reduce 50% of carbon emissions. The plan is to use LNG (Liquefied Natural Gas) in electricity generation and transport. The Government also established a new policy that should be used in all electricity generation facilities in Indonesia.

However, despite this huge fossil fuel supply, Indonesia plans to rely more on renewable energy sources by 2035 to reduce carbon emissions and slow down the effects of climate change.

European Energy Crisis Threatening Data Center Industry 

The combination of high energy prices and demand has led to an electricity shortage in European countries, with the UK, Germany, Italy, Belgium, and Spain being hit the hardest.

Due to this power shortage and high costs, many companies have been forced to limit their usage or relocate their data center operations to other parts of the world. For example, Amazon had planned on opening a new data center in Europe but decided against it because of these conditions. Instead, they opened a new facility in Dublin, Ireland, with lower energy costs thanks to its use of wind power.

As well as companies relocating their data centers overseas for better energy prices, some limit their operations within Europe by using less power. Several companies, including Microsoft, Yahoo!, and Intel, have announced plans to scale back their operations until the issue is resolved.

It has been predicted that this crisis will negatively affect the data center industry in the next five years. The loss of data centers might negatively affect the overall economic growth in Europe, as many companies have relied on these data centers to move their business operations into a more cost-effective environment, such as Indonesia.

Natural gas production has immense potential in Indonesia and is cheaper than coal

Liquid natural gas (LNG) has been known to be a viable replacement for electrical power in data centers, as it can provide electricity at similar rates as electricity from the grid.

However, much research has yet to be done on the overall carbon footprint of LNG versus grid electricity. A study published by the Lawrence Berkeley National Laboratory indicates that, in many cases, this new source of power would reduce the carbon emissions of data centers by over 50 percent.

According to The Next Web, a U.S.-based Natural Gas Council report found that 40 to 50 percent fewer carbon emissions came from servers that used LNG instead of traditional fuel sources like coal or oil.

The Next Web states that the council’s findings are significant because they “go against current trends.” Several other companies have been looking into clean energy alternatives, but LNG adoption rates still need to be higher than traditional power sources.

They believe that natural gas’ affordability compared with coal makes it a more attractive energy source for ordinary Indonesians who currently use little fuel for heating or cooking. One estimate puts natural gas’ cost at about half that of coal—and with less harmful effects on our environment.

Natural gas could be viable in powering Indonesia’s growing digital economy. Still, the country’s development and growth are being held back by a need for more investment in infrastructure and exploration that could boost its natural gas output.

Indonesia might have the potential to become the world’s next great natural gas producer, but if it invests in infrastructure and exploration soon, that potential may never be realized.

Natural gas has a smaller carbon footprint than other fossil fuels.

One solution to this problem is to develop more efficient methods for cooling these data centers. The most common way is using water-based cooling systems, which can consume enormous amounts of electricity. This is especially true in areas where the local energy grid is less reliable, such as California; in these areas, grid blackouts can cause servers to overheat and shut down temporarily or even permanently.

Liquid natural gas (LNG) has been suggested as an alternative to generating electricity for data centers. It is far less reliant on a stable grid and can be provided by on-site generators. LNG has already been used successfully at some large industrial plants, including oil refineries and chemical manufacturing facilities—and now data centers are also taking advantage.

The Government plans to replace all coal power stations with natural gas.

To reduce the nation’s greenhouse gas emissions, the Indonesian Government plans to replace all coal power stations with natural gas by 2025. It will bring the country’s emissions down by up to 50%.

The Government has proposed converting one million households to natural gas by 2020. Although there is still much to be done on the infrastructure side. Major players have already invested in distribution systems and LPG (liquefied petroleum gas) bottling plants. These companies are optimistic about their prospects in Indonesia, given how much consumer demand there would be.

The new plan was announced at a press conference, and it is hoped that by reducing emissions, Indonesia can avoid the problems other countries have encountered due to global warming. The Government has also promised to plant more trees and improve air quality in various parts of the country, which will further help them achieve their ambitious carbon reduction goals.

In addition, Indonesia’s economy will be strengthened by the steady flow of foreign currency from the natural gas industry. The export of liquefied natural gas (LNG) is expected to boost Indonesia’s economy by $50 billion in the next five years.

Gas-sourced data center electricity supplies are available in Jakarta and its surroundings.

With the current trend of a growing number of IT-based companies, the need for data centers and co-location facilities is on the rise. Most of them are based in the neighboring cities to Jakarta, such as Bekasi and Tangerang.

Still, some providers have recently started building and operating data centers in Jakarta. While this would add more strain to the existing energy supply, Jakarta’s availability of natural gas (NG) has increased its electricity production share.

In addition, some private companies have begun developing data centers powered by natural gas in the country, including Google and Azure. Even Amazon Web Services is working on a solar farm project with a capacity of 120 MW in the region.

Several data centers in Indonesia have started using electricity from gas generators in combination with emission-reducing technology to become more environmentally friendly. Indonesia still needs a lot of data centers, especially those that are more sustainable and reliable.


Indonesia is on track to reduce its greenhouse gas emissions by more than 50% in 2030, according to a new report, the country’s target under the Paris Agreement.

The Government has also recognized the potential of a new program and has pledged to reduce its carbon footprint by 10% within the next ten years, even if doing so means spending more money. Many businesses have already signed up for this program, including Bank Central Asia and BNI 46.

With the rising costs of fossil fuels and the increasing awareness of their adverse environmental effects, more leaders are considering whether or not it makes sense to switch from conventional energy sources like natural gas, coal, oil, and other fossil fuels.

Indonesia has made much progress in diversifying its energy sources over the last decade. Still, most of that has come from non-fossil fuel sources such as hydroelectricity and geothermal power. Natural gas production will make a huge difference in moving the country from a net importer of energy to a more self-sufficient one.

This commitment to environmental protection is not only beneficial to Indonesia but also helps to improve its image among other countries and international entities.

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