BPH Migas, PGN Market Test GasKita Networks

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 337.Pers/04/SJI/2021

Date: 21 September 2021

BPH Migas, PGN Market Test GasKita Networks

The Indonesian Downstream Oil and Gas Regulatory Agency (BPH Migas) together with state gas company Perusahaan Gas Negara (PGN) on Tuesday (21/9) started the market test of GasKita in East Jakarta. Going under the title of 'GasKita, PGN Cares for Mothers', it is one of the government efforts to meet the target of One Million Household Natural Gas Connections (SR) per year as set out in the National Medium-Term Development Plan (RPJMN) of 2020-2024. The government has a plan to install over 4 million household connections until 2024.

The GasKita market test was attended by Head of BPH Migas Erika Retnowati; Members of BPH Migas Committee Wahyudi Anas, Basuki Trikora Putra, Saleh Abdurrahman; Natural Gas Director of BPH Migas Sentot Harijady BTP, Director of Oil and Gas Infrastructure Planning and Development of Ministry of Energy and Mineral Resources Noor Arifin Muhammad, and President Director of PT PGN Tbk. M. Haryo Yunianto.

"We've taken various aspects into account when fixing the price. First, from the government's point of view, it is our duty to guarantee the availability and access to natural gas. Next, from the perspective of the business entity, we must ensure that business entities make profit, although we will limit it within reasonable amount. Finally, of course, (we considered) public interest," said Erika.

As the gas sub-holding company of state-owned enterprise PT Pertamina (Persero), PGN will prepare a roadmap on gas network consumer addition. For 2022, PGN has set a target to install one million household gas connections which will bring substantial benefits, such as reducing LPG imports by 144,000 tonnes annually, providing employment for 83,000 workers, scaling up the level of local content by up to 70%, making a saving on household gas use of over Rp100 billion per year, and supporting the economic growth through improved competitiveness and people's purchasing power.

"The market test of 'GasKita, PGN Cares for Mothers' in Jakarta is one of the development patterns of gas networks that can be replicated in other areas in Indonesia. PGN is ready to cooperate with various parties to develop gas networks and fulfill the government target," said President Director of PGN, M. Haryo Yunianto.

For the record, there are 15,479 GasKita applicants in Jakarta and 37,929 applicants in Tangerang. GasKita is offered at Rp10,000 per m3. (IY)

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