Construction Of Gas Jars To Press LPG Subsidies

JAKARTA - Secretary General of the Ministry of Energy and Mineral Resources (ESDM) Ego Syahrial revealed the government's commitment to continuing the natural gas network development project (jargas) for households in 2022.

Ego said that with the construction of the gas network, the government could reduce the 3 kilogram (kg) LPG subsidy which almost reached Rp127 trillion.

"It's very big. If it is successful, the pipeline will be carried directly from the gas well and directly used by the community, of course, the subsidy will be able to suppress," he said at the Green Economy Indonesia Summit 2022, Wednesday 11 May.

He continued, although it is rich in natural gas, in fact Indonesia still imports LPG up to 80 percent of the total 8 million metric tons of gas consumed by 53 million general public.

Based on data from the Ministry of Energy and Mineral Resources, the government has implemented a gas network program since 2009 and until 2021, with a total of 662,431 gas lines for household connections.

Construction of Gas Jars in 12 Regencies/Cities

Meanwhile, in 2022 the Ministry of Energy and Mineral Resources plans to build 40,777 gas networks for household connections in 12 districts and cities, namely Siak and Pelalawan in Riau; Tanjung Jabung Barat in Jambi; Musi Banyuasin, Muara Enim, and Ogan Komering Ulu Timur in South Sumatra; Indramayu in West Java; Semarang in Central Java; Gresik, Probolinggo, and Lumajang in East Java; to Wajo in South Sulawesi.

Previously, the Ministry of Energy and Mineral Resources, through the Director General of Oil and Gas, was committed to closely monitoring the implementation of gas line construction to ensure that the infrastructure built with State Budget and Expenditure (APBN) funds was completed on time and of high quality.

"The Directorate General of Oil and Gas will continue to monitor the implementation of gas and gas construction. We remain committed that the quality of gas gas construction is very much determined in terms of implementation, construction and when we install it, it is confirmed that all the facilities are functioning as they should," said Secretary General of Oil and Gas, Alimuddin Baso, as the power of attorney. Budget Users at the 2022 Gas and Gas Construction Contract Signing event, Monday 14 March.

Learning from the experience of the last 10 years, said Alimuddin, indiscipline in the implementation of jargas development causes results that are not optimal.

The distribution as well as the installation of gas stoves to houses with gargas installed is one of the efforts to ensure that the implementation of development goes well.

"It is possible that the contractors who are implementing the jargas construction feel this (indiscipline) is an advantage in terms of cost efficiency. But we will continue to pursue it if the commitment is not confirmed with evidence of gas flowing into the houses," he concluded.