Industrial Gas Producers Play Crucial Role in Indonesia’s Manufacturing Sector

Jakarta, INTI - Industrial gas producers serve as a vital support sector for the development of the manufacturing industry. Currently, Indonesia's national industrial gas production capacity stands at 2.5 million tons per year, capable of meeting the domestic demand for industrial gas, which amounts to 1.4 million tons per year.

Speaking at the 11th Congress and Technical Seminar of the Indonesian Industrial Gas Association (AGII) in Kuta, Bali, on Tuesday (7/5), Minister of Industry Agus Gumiwang Kartasasmita highlighted the active role played by the AGII in overseeing approximately 189 industrial gas producers since 1972.

According to Minister Agus, the demand for industrial gas includes 587 thousand tons per year of oxygen, used in various sectors such as hospitals, workshops, small industries, aquaculture, steel production, and stainless steel. Additionally, 673 thousand tons per year of nitrogen are utilized for small industries, hospitals, cooling, stainless steel production, inert gas, oil drilling, and enhanced oil recovery.

Furthermore, there is a demand for 84 thousand tons per year of carbon dioxide, which finds applications in cooling, small industries, hospitals, carbonation, oil drilling, and noble gases. Additionally, there is a requirement for 106 thousand tons per year of other gases. Overall, the existing production capacity can meet domestic demand adequately.

As industrial downstream activities based on minerals, both metals and non-metals, and the establishment of new industrial zones grow, the demand for industrial gas, such as oxygen, is expected to increase rapidly. Oxygen is essential for industries like smelters, steel and stainless steel industries, mineral industries (both metals and non-metals), and others.

Minister Agus also commended the AGII for supporting the government's program in addressing oxygen needs during the Covid-19 pandemic. He emphasized the crucial role played by the Indonesian gas industry as a supplier of much-needed oxygen during that time.

The Covid-19 pandemic, according to Minister Agus, served as a learning experience for all parties involved. Building a strong infrastructure is essential to develop the manufacturing sector. "Infrastructure is the key to developing the manufacturing sector," he emphasized.

Minister Agus lauded the exceptional and invaluable contribution of gas producers in Indonesia during the pandemic. He hailed them as heroes and stressed the importance of ensuring that the national gas supply infrastructure is improved to ensure stronger national resilience.

Challenges and Opportunities

Therefore, Minister Agus encouraged all industries affiliated with the AGII to continue developing themselves in anticipation of future opportunities and challenges. This includes addressing the demand for renewable and environmentally friendly energy sources as part of the commitment to decarbonize the industrial sector.

"This represents both an opportunity and a challenge that we must face together with optimism. The emergence of hydrogen as an environmentally friendly fuel alternative needs to be anticipated as an opportunity for the future development of the industrial gas industry," he added.

Minister Agus explained that some challenges for industrial gas producers in the future include the readiness of technology and infrastructure that need to be improved to shape and mature the domestic market and enhance process efficiency to remain competitive and penetrate export markets.

"We are striving to issue measured policies to support the growth of the industrial gas sector, not only in providing industrial gas but also for the development of new energies such as hydrogen and green ammonia," he emphasized.

Moreover, the development of green hydrogen and green ammonia is one of the strategies towards achieving the Net Zero Emission (NZE) industrial target by 2050 by substituting fossil-based raw materials with those derived from renewable sources.

"I hope we can enhance collaboration in responding to climate change through decarbonization efforts in the industrial sector," Minister Agus concluded.

The AGII is committed to supporting the sustainability of the national industry towards the vision of Indonesia Emas 2045. AGII Chairman Phajar Hadywibowo explained that the 11th AGII Congress and Technical Seminar serve as a platform for industrial gas company leaders to share ideas, strengthen industry collaboration, drive innovation, and explore the latest technological solutions to address global climate change challenges and environmental preservation.

"The 11th AGII Congress aims to boost collaboration among stakeholders, including the government, industry, and academia, in promoting the development of technologies and policies that support clean and sustainable energy," he said.

Chairman of the 11th AGII Congress and Technical Seminar Organizing Committee, James Waskito Sasongko, added that all AGII members present strive to communicate and collaborate to strengthen their role in the new era concerning decarbonization and renewable energy. The congress and technical seminar are expected to be a significant milestone in directing strategic steps for the development of the Indonesian gas industry towards a greener and more sustainable future," James concluded.