Aiming For Bigger LPG Subsidy Savings, Government Builds 1 Million Gas Jars

JAKARTA - The Ministry of Mineral Resources Energy (ESDM) is pursuing the implementation of the construction of a gas network of 1 million households (SR) per year. This is one of the efforts to reduce imports of Liquified Petroleum Gas (LPG).

The Director General of Oil and Gas (Dirjen Migas) of the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that the construction of household gas will be increased from 800 thousand SR to 1 million SR per year. This program has also received support from the Ministry of Finance and financial guarantor institutions.

"We already have the pilots yesterday in Batam and Palembang for this jargas," said Tutuka, in the 'Energy Corner' program, Monday, February 27 yesterday.

Tutuka continued, for the development of more massive jargas, in the future the Ministry of Energy and Mineral Resources will develop jargas in 12 cities or districts with large-scale gas network development.

"We have chosen that the regency or city is quite large in the future," said Tutuka.

As is known, the Ministry of Energy and Mineral Resources targets the construction of a natural gas distribution network for households (jargas) to reach 4 million house connections (SR) by 2024. For this reason, the Government encourages cooperation between Governments and Business Entities (KPBU) starting in 2022.

PT PGN Tbk sebagai Subholding Gas Pertamina pun telah melakukan sejumlah program jargas melalui program Gaskita dengan skema investasi internal PGN untuk 4 Provinsi, yaitu Lampung, DKI Jakarta, Banten, dan Jawa Barat meliputi 11 Kabupaten Kota yaitu Lampung, Bekasi, Cilegon, Cirebon, Jakarta Timur, Jakarta Barat, Jakarta Pusat, Karawang, Kota Tangerang, Kab Tangerang, dan Bogor.

In addition, PGN. also built jargas in Yogyakarta with a development target of 5,900 SR in Gondokusuman District, which is spread across four urban villages. Meanwhile, in Depok District, District. Sleman, PGN plans to build around 7 thousand SR. This number is more than the initial plan when the signing of the jargas construction cooperation between PGN SOR III and the Sleman Regency Government in October 2022.

In addition, PGN is also developing gas lines in the Tangerang Region, the development target reaches 35,749 Home Connections (SR), 203 small customers (MSMEs), and 38 commercials. In order to facilitate gas distribution, a dedicated pipe will be built, plus 37 KM from the existing pipeline to the Bintaro Area in stages. Construction will be carried out at Villa Melati Mas Housing, Graha Raya Housing, and Bintaro Jaya Housing.

Based on data from the Ministry of Energy and Mineral Resources, as of 2019, the total gas networks built reached 537,936 SR, consisting of 400,269 SR (74.41 percent) built by the Government through APBN funds, 132,982 SR (24.72 percent) built by PT PGN and 4,685 SR (0.87 percent) built by PT Pertamina. The Jargas with APBN funds has been built by the Government since 2009.

Based on Presidential Regulation Number 18 of 2020 concerning the 2020-2024 Medium-Term Development Plan (RPJM), gas network development is one of the national strategic projects. This is an effort by the Government to increase domestic gas utilization, reduce LPG imports by 603,720 thousand tons per year, save LPG subsidies by Rp297.55 billion per year, and save public energy expenditure of Rp386 billion per year. Jargas is also useful in reducing the oil and gas trade balance deficit to Rp2.64 trillion per year.

Gas needs for gas jargas are relatively small where 0.1 mmscfd can be used to meet 10,000 SR. Therefore, the Government continues to encourage development so that the number of people who can enjoy the benefits will be even greater.