Jakarta – PT Perusahaan Gas Negara Tbk (PGN) continues to expand access to clean energy for the community by targeting 200,000 new household gas network (jargas) connections by 2025. This expansion will be focused on the Sumatra and Java regions as part of efforts to support the national energy transition and reduce the community’s dependence on subsidised LPG.
PGN’s President Director, Arief S Handoko, emphasised that developing jargas is a strategic step that provides more efficient energy and contributes to savings in household spending and government subsidies.
“With the gas network, people can get cheaper and more stable energy than LPG. In addition, jargas help reduce the burden of government subsidies, which reach hundreds of billions of rupiah each year,” Arief said in a press conference on Monday, February 3.
PGN has operated more than 815,000 household jargas connections, with a pipeline network of 20,000 kilometers. The company aims to achieve 1 million household connections in the next few years, which aligns with the government’s vision of expanding national natural gas infrastructure.
Gas infrastructure investment increases
To support the achievement of this target, PGN has allocated USD 338 million in capital expenditure (capex) by 2025.
PGN’s Finance Director, Fadjar Harianto Widodo, explained that around 67% of the total capex would be used for gas infrastructure development, including jargas projects and low-carbon energy innovations such as compressed natural gas (CNG) and liquefied natural gas (LNG).
“Gas demand in the household and industrial sectors continues to increase, especially in key regions in Sumatra and Java. Therefore, infrastructure investment is key in increasing natural gas supply’s distribution capacity and reliability,” Fadjar said.
In addition, 33% of PGN’s investment budget will be allocated for upstream business development, including exploration in the Pangkah, Ketapang, and Fasken Working Areas (WK) and the extension of the Muara Bakau WK contract.
PGN targets to increase gas distribution volume by 12% by 2025, in line with the increasing energy demand in industrial areas and national strategic projects.
Arief is optimistic that the development of jargas will further strengthen PGN’s role in providing clean energy that is cheaper and more accessible to the public.
“Natural gas is the most realistic energy transition solution today. With the expansion of the jargas network, we want to ensure that people get more efficient and environmentally friendly energy,” he added. (Hartatik)