Private Can Join Jargas Business, Government Prepares Rules

Director General of Oil and Gas of the Ministry of Energy and Mineral Resources Tutuka Ariadji. (Photo: Doc. ANTARA)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) is preparing a cooperation scheme between the government and the private sector in developing a household gas network program.

Just so you know, the government has set 2.4 million Household Connections (SR) to be realized by 2024.

Director General of Oil and Gas at the Ministry of Energy and Mineral Resources Tutuka Ariadji said, through the revision of Presidential Regulation Number 6 of 2019 concerning the Provision and Distribution of Natural Gas Through the Transmission Network and/or Natural Gas Distribution for Households and Small Customers, the Government will use a Government Cooperation with Business Entities (PPP) scheme.

"The first big point is that there are already regulations for the Presidential Regulation, but the KPBU jargas has not been included in the Perpres," said Tutuka, quoted on Wednesday, August 18.

Tutuka explained that the implementation of this scheme was due to the low absorption of the jargas program. After running since 2019, only 800 thousand decrees have been installed.

"So it is still small and with the KPBU jargas we hope that it can be multiplied by how many times from now on. We are targeting hundreds of thousands to close to a high for each year so that the expected target is not far away to be pursued," explained Tutuka.

He also explained that the Ministry of Energy and Mineral Resources would increase the price mechanism in the regulation.

"There is a pricing mechanism, it will follow this policy so that this can be in line, the KPBU program can run," concluded Tutuka.

The city gas network development program is a replacement project for Liquefied Petroleum Gas (LPG), this program has been implemented by the Ministry of Energy and Mineral Resources c.q of the Directorate General of Oil and Gas since 2009 and so far the total has been built 662,431 SR.

The purpose of building jargas is to provide access to energy to the community, save on the cost of natural gas fuel, help the community's economy towards the economy of an independent and environmentally friendly society and reduce the burden of fuel and/or LPG subsidies in the household sector.