Having Domestic Supply, PGN Claims To Be Tough In Facing Global Turbulence

JAKARTA - PT Perusahaan Gas Negara Tbk (PGN) emphasized the resilience of its business model amid global uncertainty, ranging from geopolitical turmoil to the potential impact of US protectionism policies.

With a fully domestically-based integrated business structure from supply, infrastructure, to customer markets, PGN is able to maintain operational and financial stability consistently.

PGN has a high resilience to global volatility because 93 percent of the supply comes from domestic sources, supported by infrastructure, which is entirely located in Indonesia and a domestic-oriented customer portfolio. This makes our exposure to external risks relatively minimal," said PGN President Director Arief S. Handoko, Monday, July 14.

He added that geopolitical tensions and US foreign policy are expected to reduce the rupiah exchange rate and global energy prices.

As a result, the export sector, including electronics, garment, and skin, has the potential to reduce production activity, so industrial gas consumption is estimated to fall by around 2.34 percent.

On the supply side, the potential disruption of global LNG shipments from Qatar due to the escalation of conflicts in the Strait of Hormuz is also wary of. However, PGN remains in a safe position thanks to prioritizing domestic gas sources and diversifying supply portfolios.

As the manager of more than 95 percent of the national gas downstream infrastructure, PGN carries out the G-A-S or Grow "Step Out" strategy that allows PGN to grow the gas market and domestic infrastructure, adapt to supply and regulation dynamics, and maintain the continuity of energy services for industrial, commercial, MSME, and household customers.

"We believe strong domestic fundamentals are key to long-term resilience. Our focus remains on optimizing national natural gas through infrastructure efficiency, supply diversification, and service continuity," said Arief.

PGN continues to expand its pipeline and LNG terminal networks to increase market penetration and flexibility in energy supply to various regions. Optimization of operations and synergy with Pertamina Group is a catalyst for strengthening profitability.

PGN also synergizes with the Government in accelerating infrastructure integration and logistics efficiency to support competitive gas prices and domestic energy utilization.

"We continue to monitor and evaluate global impacts on operational and cost structures. However, fundamentally, PGN is in a strong position to maintain sustainability and create added value for customers and shareholders," Arief concluded.