Indonesian Govt to Optimize Natural Gas for Domestic Need in 2021

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 010.Pers/04/SJI/2021

Date: 8 January 2021

Indonesian Govt to Optimize Natural Gas for Domestic Need in 2021

The Indonesian Ministry of Energy and Mineral Resources (EMR) will continue to optimize natural gas for domestic need in 2021. Besides offering 56,000 units of gas fuel converter kits to fishermen and farmers, the government has also set a target of 120,776 house connections (SR) to expand the country's gas network.

"A total of 794,000 SR will be connected to the gas network until 2021," said Minister of EMR Arifin Tasrif at the press conference on Performance Report of the EMR Sector of 2020 and Work Program for 2021 in Jakarta on Thursday (7/1).

Arifin said that gas network is more practical and environmentally friendly. "I hope we can optimize gas network because it is more practical and environmentally friendly than oil fuels," said Arifin.

To ensure the program runs with a maximum capacity and to ease the burden on state finance, the Ministry of EMR will invite business entities under the Government Cooperation with Business Entities (KPBU) scheme. "In the future, we'll expand the gas network program. For this reason, we'll carry out expansion study in 2021 on the use of the KPBU scheme," said Arifin.

The total number of house connections in the last five years is 99,100 SR in 2016, 53,700 SR in 2017, 90,200 SR in 2018, 74,500 SR in 2019, and 135,300 SR in 2020.

Special for industrial gas, the government has continued to support the construction of gas transmission and distribution pipelines. "There is some gas infrastructure that we need to finish, for example Cirebon-Semarang and Dumai-Sei Mangke pipelines as well as other terminals," Arifin added.

Previously, the Indonesian Government had shown its support to the increase in industrial competitiveness by adjusting industrial gas price to USD6 per MMBTU at plant gate. A total of 2,601 BBTUD of natural gas has been allocated to Certain Industries (1,205 BBTUD) and PLN's power plants (1,396 BBTUD). (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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