Government Will Reevaluate Gas Infrastructure Plans

It costs around IDR10 million to build a home connection for the gas household network, whereas the government previously aimed to construct 1 million connections yearly to significantly reduce LPG imports.

Ibeth Nurbaiti

16 Okt 2023 - 21.41
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Government Will Reevaluate Gas Infrastructure Plans

Illustration - An officer completed the installation of a household gas network (jargas) at one of the residents' houses./Binsis

Bisnis, JAKARTA — The government aims to once again promote the utilization of natural gas through a gas network involving a series of improvements, including preparing gas price incentives. The decision provides additional support for the continuity of one of the national strategic projects (PSN).

So far, the project –expected to reduce import dependency and liquefied petroleum gas (LPG) subsidies – has faced obstacles. The high cost of building pipelines and infrastructure directly to homes is one of the factors causing delays in the acceleration of natural gas utilization.

It costs around IDR10 million to build a home connection, whereas the government had previously aimed to construct 1 million connections each year to significantly reduce LPG imports.

Since 2022, the government decided not to allocate the State Budget for household gas network and had planned to cover the expenses through public-private partnerships given that PT Pertamina Gas Negara Tbk. or PGN (PGAS) – the company tasked with implementing the program – is limited in capability to develop the gas network.

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Government Will Reevaluate Gas Infrastructure Plans

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