PGN expands gas pipeline use to hotels and UMKM in Lumajang, Indonesia

PT Perusahaan Gas Negara (PGN) is targeting the expansion of its piped natural gas network (jargas) in Lumajang, East Java, beyond household connections to serve hotels, restaurants, cafés and micro‑small‑medium enterprises (UMKM). Area Head for the Pasuruan region, Mochamad Arif, said public awareness of switching to non‑subsidised gas is high, especially after recent restrictions on 3‑kg LPG cylinders, creating a market opportunity.

In 2023 the province installed 4,020 household connections, of which 2,777 remain active; many disconnections have resulted from delayed payments. PGN has already discussed the expansion with the Lumajang local government, completed a census of potential commercial customers, and is prepared to connect businesses that are within the existing pipe network. Challenges remain where commercial sites lie outside the current pipeline coverage.

To facilitate the transition, PGN offers self‑service meter reading through its PGN Mobile app and an official WhatsApp service, aiming to make gas usage easier for both households and businesses that have struggled with LPG supply shortages.