The Government Encourages Jargas Development To Press Imports And Subsidies Of LPG

Illustration. (Photo: Doc. Antara)

JAKARTA - The government encourages the role of State-Owned Enterprises (BUMN) and the private sector to expand natural gas networks, through the Government and Business Entity Cooperation (PPP) scheme. This is one of the efforts to import and subsidize LPG. Director General of Oil and Gas at Tutuka Ariadji, said the jargas that had been built from 2009 to 2021 with the State Revenue and Expenditure Budget (APBN) funds reached 662,431 Home Connections (SR) in 17 provinces and 57 districts/cities. Meanwhile, the total number of APBN plus non-state budgets reached 840,875 SR. For the 2022 APBN jargas, it was built according to the target of 40,777 SR. "Most of the jargas were built with APBN funds. Indeed, this is a Government program where gas pipes are built and enter the house, given stoves as well. For gas, the Directorate General of Oil and Gas and Oil and Gas SKK. Jargas does not need large amounts of gas. For one sub-district, zero gas is most needed by MMSCFD," said Tutuka, quoted from the official website of the Directorate General of Oil and Gas, Friday, October 14. According to Tutuka, the natural gas network for households (jargas) is one of the Government's programs whose benefits can be directly enjoyed by the community. In addition to being cheap, jargas is cleaner, safer, efficient, and available 24 hours. Jargas is also one of the government's efforts to suppress LPG subsidies and imports. "The community is greatly helped by the existence of gas lines. Especially in the month of Ramadan, there is no need to go out at night running out of gas because it is available 24 hours. Gas prices are also cheaper than non-subsidized LPG. Other conveniences, no longer need to lift the tubes. If you live in flats, it's difficult if you have to lift the tube," he explained. Therefore, the government continues to encourage the construction of jargas. However, in the implementation of this development, the government has limited budget, therefore there are opportunities for gas network development with the Business Entity Government Cooperation (PPP) scheme. "Starting next year, the government will start developing gas networks through the KPBU scheme," he said. With the KPBU scheme, the government will encourage BUMN and private companies to invest in the construction of this jargas. "If the KPBU budget is auctioned, so in the future we may also open international legislation," he said. In the construction of the KPBU scheme jargas, the local government is expected to assist in licensing, as well as land provision if needed. "We really expect local governments to help in the field because there are also problems with the local community," he said. Tutuka revealed that this year a pilot project is being carried out in two cities, namely Palembang and Batam from 13 locations proposed by the Ministry of Energy and Mineral Resources. Through this scheme, it is hoped that the jargas can be built on a large scale. For one SR, it costs around Rp. 10 million. "In the future, we hope to build 1 million SR per year. But now the pilot project is first hundreds of SR," added Tutuka. The PPP scheme is carried out with the aim of, among others, to meet sustainable funding needs, to realize the provision of quality, efficient, targeted and timely infrastructure, and to provide certainty of the return of business entity investment through the government's periodic payment mechanism. Even if you cooperate with a business entity, it does not mean that the Government will relinquish its obligations. No transfer of assets has been made to business entities. However, the government hopes that with the involvement of business entities, the services provided to the community will be more efficient and quality-preserving.