Phase III Gas Network Contracts Signed

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 128.Pers/04/SJI/2021

Date: 10 April 2021

Phase III Gas Network Contracts Signed

The Indonesian Ministry of Energy and Mineral Resources (EMR) again signed the contracts for the construction of household gas pipeline networks (jargas) phase III of 2021. The contracts will cover 44,461 house connections (SR) worth of Rp 372,134 billion. The signing ceremony was held at the Ibnu Sutowo Building in Jakarta on Friday (9/4), and marks completion of contracts signing for 2021.

The contracts signing was witnessed by Secretary of Directorate General of Oil and Gas as Proxy of Budget User (KPA) Alimuddin Baso, Director of Oil and Gas Infrastructure Planning and Development Noor Arifin Muhammad, and a number of high officials within Directorate General of Oil and Gas.

Phase III of the jargas construction is made up of 3 packages that cover 7 locations, specifically Wajo Regency 5,750 SR, Banggai Regency 5,005 SR, Bojonegoro Regency 10,000 SR, Lamongan Regency 5,935 SR, Mojokerto City 5,699 SR, Mojokerto Regency 5,935 SR, and Jombang Regency 6,137 SR.

Alimuddin Baso as the KPA called on the contractors to meet the standards, quality, and schedule. Alimuddin also requested them to uphold professionalism, trust, and integrity.

For the record, the Indonesian government will build 120,776 house connections in the household gas networks in 21 regencies/cities.

Phase I of the contracts was signed on 10 March 2021, made up of 5 contract packages worth of Rp 467,791 billion for 60,875 SR. The networks will be built in North Aceh Regency, Lhokseumawe City, and East Aceh Regency of 11,526 SR; Cirebon City and Regency 8,273 SR, Surabaya City and Sidoarjo Regency 17,506 SR, Pasuruan City and City 12,753 SR, and Probolinggo City and Regency 10,817 SR.

Phase II was signed on 15 March 2021, with a value of Rp 137.13 billion to build 15,440 SR. In Phase II, as many as 8,541 SR will be built in Karawang and Subang Regencies, while another 6,899 SR will be built in Banyuasin Regency.

The gas network construction makes one of the National Strategic Programs (PSN) meant to support energy diversification. The gas network scheme has been carried out to optimize the use of natural gas potential for the household sector.

The gas network construction is aimed to give energy access to the public, save fuel cost for cooking, support environmentally-friendly economy, and reduce subsidies on oil fuels and/or LPG for households.

The Ministry of EMR, in this case Directorate General of Oil and Gas, has carried out the program since 2009. To date, as many as 535,555 household connections have been installed. According to Indonesia's National Medium-Term Development Plan, a total of 4 million connections have been targeted to be installed until 2024. (IY)

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

Agung Pribadi (08112213555)

Share This!