PGN's PE Pipes Support 50 Percent TKDN Target In 2026

Illustration. (Photo: Doc. Antara)

JAKARTA - Gas Subholding PT Perusahaan Gas Negara Tbk (PGN) through its subsidiary, PT PGAS Solution, fully supports the government's commitment to optimizing the even distribution of natural gas utilization in Indonesia through the provision of Polyethylene (PE) pipes for the construction of household gas networks.

During a review of the PE Pipe Factory on Tuesday, August 31, the management of PT Perusahaan Gas Negara Tbk reviewed the PE Pipe factory of PT PGAS Solution which operates 24 hours to ensure the availability of pipe needs and produces pipes with the Solfipe brand.

Solfipe consists of two types, namely MDPE-80 (Medium Density Polyethylene) for gas networks and HDPE-100 (High Density Polyethylene) which is a type of pipe commonly used for gas pipes, but in the future it can be used for subducts and water pipes.

Solfipe for MDPE-80 Gas Pipes already has a Domestic Component Level (TKDN) value of above 25 percent, while for HDPE-100 Pipes it has a TKDN value of above 48 percent.

"This factory is the work of friends of PGAS Solution in the Manufacturing Division. It is hoped that the production of PE Pipes can help the Government's program, and the presence of the PE Pipe Factory will become a new spirit. Hopefully in the future PGASOL can continue to be motivated to produce other works ," said PGN President Director, M. Haryo Yunianto in a written statement.

Haryo added that PGAS Solution's PE pipe products have also been used for the construction of gas lines in a number of areas. So it can support the jargas development program in the coming years. This includes supporting Pertamina's Oil and Gas Holding commitment to gradually increase TKDN until it reaches the 50 percent target by 2026.

Erwin Simanjuntak as President Director of PGAS Solution added, PGAS Solution's PE Pipe Products have supported the Ministry of Energy and Mineral Resources program. We have also supplied supplies for the construction of ESDM jargas in Wajo, Banggai regencies for 9 kilometers and the Jargas Program in PGN Jakarta and Tangerang areas totaling 11,794 SR.

Solfipe has also received a certificate from LEMIGAS whose testing process has used the ISO 4437 standard, the Polyethylene Pipe Quality Testing Standard, so that it can be ensured that all pipes are in accordance with the standard and are safe.

PT PGAS Solution has a PE Pipe Factory located in Klari, East Karawang, West Java with an area of 3,800 m2. This factory can meet the needs of PE pipes in the PGN Group and other parties.

The presence of a PE Pipe factory can be a solution to reduce material purchasing costs and provide direct savings on gas and gas project financing.

PGAS Solution's PE Pipe Factory started production in 2021 and is the first PE Pipe Factory in the Pertamina Group. The innovations and achievements of PT PGAS Solution are able to increase the Domestic Component Level (TKDN) and the efficiency of development costs.

During the review of the PE Pipe Factory, PGN's Board of Directors and Commissioners together with PGAS Sol also held a discussion session regarding PE Pipes and future plans.

"In the future, it is possible that PGAS Solution will expand in the development of other businesses and synergize with Pertamina," added Archandra Tahar as PGN's President Commissioner.

The use of PGAS Solution's PE pipe as a domestic component is expected to help reduce the use of imported products and strengthen the national industry, so that it can drive the national economy.