Pertagas urged to expand gas network to cut LPG imports

Jakarta (ANTARA) - The government has urged Pertagas, the gas subsidiary of state-run energy company Pertamina, to expand Indonesia’s gas network to households, aiming to reduce reliance on imported LPG, curb foreign exchange outflows and lower energy subsidy costs.

State-Owned Enterprises Regulatory Agency (BP BUMN) Head Dony Oskaria said Pertagas has the capacity to help the government reduce energy subsidies and foreign exchange spending on LPG imports.

In a statement received here Wednesday, Oskaria said expanding gas connections would optimize domestic gas supplies and help Indonesia strengthen energy self-sufficiency.

He also stressed the need for a more integrated gas network to meet public demand while improving the efficiency of government spending.

“The gas network is the key. We will focus our efforts on it going forward. If this initiative succeeds, it will prevent unnecessary foreign exchange spending and generate significant savings,” Oskaria said.

Oskaria, who also serves as chief operating officer of sovereign wealth fund Danantara, spoke after a meeting at which Pertagas outlined its role in ensuring adequate gas supplies across Java.

Pertagas operates a transmission pipeline linking Cirebon in West Java and Semarang in Central Java. The Energy and Mineral Resources Ministry built the infrastructure using state budget funds.

The government has instructed Pertagas to prepare a master plan for expanding the national gas network, covering infrastructure readiness, business models and marketing strategies, initially targeting major cities including Jakarta and Surabaya.

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Translator: Putu Indah, Tegar Nurfitra
Editor: Rahmad Nasution
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