The Ministry of Energy and Mineral Resources (ESDM) has prepared Rp5.2 trillion for household gas in 2027.

Illustration. (Photo: Dok. Antara)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) has allocated a budget of IDR 5.2 trillion in the 2027 fiscal year (TA) to continue the construction of household natural gas (jargas) network infrastructure in various regions.

Director General of Mineral and Coal of the Ministry of Energy and Mineral Resources, Tri Winarno, said that the budget was allocated to build almost one million connections, or precisely targeting 959,232 house connections (SR).

"The program for the expansion of multi-year contract (MYC) household gas in the 2026-2028 fiscal year and a supervisory consultant for 959,232 home connections amounting to Rp5.2 trillion," said Tri, representing the Ministry of Energy and Mineral Resources' Level I, in a public hearing with Commission XII of the DPR RI in Jakarta, quoted by Antara, Tuesday, June 16.

The total indicative payment of the Ministry of Energy and Mineral Resources for the 2027 fiscal year has been set at IDR 27.33 trillion, based on a joint letter from the Minister of Finance and the Minister of PPN/Head of Bappenas.

Tri explained that 82 percent of the total ceiling or IDR 22.48 trillion was prioritized for strategic program spending and physical infrastructure.

In addition to household energy, the allocation of energy infrastructure in the oil and gas sector also includes Rp3.9 trillion for the construction of one section of the Dumai-Sei Mangkei (MYC 2025-2027) natural gas pipeline.

Furthermore, the ministry also allocated a budget for one section of the Semarang-Solo-Jogja gas transmission pipe (MYC 2026-2028) of IDR 702.3 billion, as well as one section of the Cirebon-Bandung gas transmission pipe (MYC 2026-2028) worth IDR 577 billion.

The government, according to him, continues to accelerate the expansion of household gas as one of the strategies to reduce dependence on imported Liquefied Petroleum Gas (LPG).

Minister of Energy and Mineral Resources Bahlil Lahadalia revealed that the utilization of jargas in the country is currently relatively small and is only available in 86 cities/regencies. In fact, from the perspective of economic efficiency, the use of jargas is claimed to be much more economical up to 40 percent compared to LPG cylinders.

In order to accelerate its utilization, the government is speeding up the integration of natural gas pipeline infrastructure from Sumatra to Java, including strategic investments in the construction of the Cirebon-Semarang (Cisem) and Dumai-Sei Mangkei (Dusem) transmission pipelines.

The Ministry of Energy and Mineral Resources has recorded that household jargas installed until 2024 has reached 943 thousand connections. This number includes 703 thousand connections funded through the state budget and 240 thousand connections from non-APBN schemes.