6 Contracts for Gas Networks Signed, Construction Abide by Covid Protocols

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 148.Pers/04/SJI/2020

Date: 7 April 2020

6 Contracts for Gas Networks Signed, Construction Abide by Covid Protocols

Ministry of Energy and Mineral Resources (EMR) through Directorate General of Oil and Gas signed the contracts for the construction of gas networks (jargas) phase two for 33,518 house connections (SR). The Rp309.1 billion contracts will be carried out in 6 cities/regencies.

Director of Oil and Gas Infrastructure Planning and Development, Alimuddin Baso, expects the jargas construction will be on time, of high quality, and at budgeted cost as well as abide by the applicable health protocols to prevent Covid-19.

"To carry out the jargas construction, we must abide by the applicable health protocols to prevent Covid-19. For this reason, we cooperate with the local Health Service Offices," said Alimuddin after the online signing in Jakarta, Friday (3/4).

The contracts signing is divided into two phases online and offline. The first phase covers jargas construction carried out in Langsa City, Aceh Tamiang, and Deli Serdang Regencies for 16,709 SR with a contract worth of Rp156.3 billion.

The other phase covers Balikpapan City, North Penajam Paser Regency, and Tarakan City for 16,809 SR worth of Rp152.8 billion.

Previously on 10 March 2020, Ministry of EMR and several Regional Governments signed 7 contracts worth of Rp862.3 billion to construct 82,157 SR in 15 regencies/cities.

With the contracts signing, as many as 115,675 SR of jargas facility will be built in 21 regencies/cities. For 2020, the government has targeted to develop 266,070 SR of jargas in 49 regencies/cities.

Alimuddin adds that the government will evaluate contract packages that have not been signed. The evaluation is made due to the budget adjustment to prioritize the handling of COVID-19 pandemic.

"The government has announced that a huge budget is needed to fight Covid-19; all sectors will contribute. Priority choices will likely run, but perhaps the duration will not be enough, so we need to make evaluation," Alimuddin concluded. (IY)

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Agung Pribadi (08112213555)

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