PGN Gandeng Kemenperin Aims For The Utilization Of Natural Gas 115 BBTUD In A Number Of Industrial Estates

PT PGN Tbk, as the Gas Subholding of PT Pertamina (Persero), together with the Ministry of Industry (Kemenperin) is targeting the use of natural gas at 115 BBTUD in a number of industrial areas (KI).

PGN's Director of Strategy and Business Development Rosa Permata Sari in her statement in Jakarta, Tuesday, August 27, revealed that PGN is focused on optimizing and developing infrastructure through joint exploration with KI, which does not yet have access to natural gas supply.

"The focus of PGN is in line with the regulations issued by the Ministry of Industry," he said, quoted by Antara, Wednesday, August 28.

Meanwhile, in the group discussion (FGD) forum in Batam, Riau Islands, the Director of Industrial Territory of the Ministry of Industry, Dewi Muliana, said that the growth of the non-oil and gas processing industry reached 4.64 percent in the first quarter of 2024, which contributed 72.39 percent to the value of national exports.

"The contribution of the non-oil and gas processing sector to national GDP reached 17.47 percent and continued to grow. This can be seen from the amount of investment reaching Rp155.5 trillion or 38.73 percent of Indonesia's total investment in the first quarter of 2024," he said.

The non-oil and gas industry sector also played a major role in employment, accounting for 19.29 million people in August 2023, an increase of 181 thousand people compared to August 2022.

In the development of the long-term industrial sector, the Ministry of Industry has prepared a roadmap 2025-2045, which starts in 2025 with a focus on strengthening the structure and ecosystem of downstream industries and then for the period 2030-2034, focusing on medium and high tech resource-based industries, resulting in an increase in the complexity of industrial products.

In the future, Indonesia is projected to become the center of the global value chain and become a center for advanced manufacturing services at the regional level in 2040 2045.

To support the roadmap, the Ministry of Industry has issued a vision and mission for national industrial development as well as the issuance of derivative regulations, namely PP No. 20 of 2024 concerning Industrial Region.

Through the FGD of the Ministry of Industry and PGN, KI mapping can also be carried out which can be a short-term priority in the development of natural gas infrastructure.

There are 14 KIs out of 50 KIs, which are priorities for developing natural gas infrastructure by considering the availability of PGN's natural gas infrastructure, as well as KI status as a national strategic project.

The KIs are Panbil Tembesi, Bintan Industrial Estate, Kalimantan Industrial Park Indonesia, Indonesia Pomalaa Industrial Park, Makassar, Buli, Obi Island, Teluk Weda, Jorong, Indonesia Morowali Industrial Park, Konawe, and KI Motui.

Furthermore, PGN followed up by joint planning, site surveys, technology-economic studies, and increasing investment equity for all prioritized KIs.

On that occasion, PGN also signed head of agreement (HOA) with a number of KI regarding natural gas development with a potential natural gas volume requirement of approximately 115 BBTUD starting in 2027.

"We are committed to expanding access to natural gas by targeting industrial estates, driven by opportunities for synergy related to infrastructure that can be developed, especially in central and eastern Indonesia. PGN has the concept of integrating pipeline and beyond pipeline infrastructure," explained Rosa.

Rosa continued that in addition to meeting gas needs, joint planning with the Ministry of Industry is expected to stimulate the use of domestic natural gas and create a multiplier effect.

PGN as a business entity in the downstream sector of natural gas is ready to become the vanguard in order to realize these ideals.

"PGN's commitment and focus to providing natural gas accessibility in KI is also aimed at supporting the government in developing KI which is included in national strategic projects (PSN). The concept of integrating natural gas infrastructure can become a unit together with the provision of other infrastructure to accelerate the development of PSN," said Rosa.