Charged With The Construction Of Jargas 1 Million SR, PGN Asks For Gas Price Support 4.72 US Dollars Per MMBTU In Hulu

JAKARTA - PT PGN Tbk as Pertamina Gas Subholding proposed the purchase price of natural gas from upstream of US$4.72 per MMBTU. This is to support the construction of more massive gas network infrastructure. President Director of PGN President Director M. Haryo Yunianto said that the total construction of household gas networks until 2022 reached 982,000 house connections (SR), consisting of 597,708 SR funded by the state budget and 382,652 SR came from PGN investment as Pertamina Gas Subholding. "At this time The jargas that has been managed and built is 982 thousand SR, said Haryo, in the RDP with Commission VII of the DPR, at the DPR Building, Wednesday, January 1. Haryo continued, in 2022 the government decided not to budget for the construction of jargas in the APBN, so that the infrastructure development was fully charged to PGN. "In 2022 the APBN will not re-date the jargas so we are asked to continue the jargas program," he said. Proposing the construction of jargas as much as 1 million SR, but because the investment capability of PGN is limited, the construction of jargas is only capable of as many as 400 thousand SR. Therefore, the construction of the jargas needs to be carried out with several schemes, namely the Government Cooperation Business Entity (PPP) and private involvement. PGN's ability to invest in PGN itself in 400 thousand SR, it is hoped that the remaining 600 thousand can be carried out by the government through KPBU and other private sectors," he said. Haryo revealed, in Investment in PGN is also responsible for returning investment, although it still provides services to the community at low prices. Thus, the company must find a way to continue to have the ability to build a gas network as launched by the government. Pertamina Gas Subholding also submitted an application to get support for lowering gas prices from the upstream side, which is a maximum of US$ 4.72 per mmbtu. Meanwhile, the current average price is US$ 6.5 to 7 per mmbtu. Because the price of gas is PGN difficult to make investment. "This is what we ask for if we can support it to get a maximum upstream gas price at US$ 4.72 per mmbtu, because we are currently still buying upstream gas at a price of B to B, some 6.5 -7, so this burdens our investment economy, but we continue to carry out the investment, we have also written the application letter," concluded Haryo.