[CLSTR]
< Back to situations

Monitor this situation.

[SITUATION] · [QUIET] · [BUSINESS]

13 clusters · 30 sources · 74 days · First seen · Last updated

Indonesia gas supply and distribution expansion

Overview

PT Perusahaan Gas Negara (PGN) continues to expand its piped natural gas network and commercial reach across Indonesia, utilizing its 33,000 km pipeline ecosystem and “beyond pipeline” solutions like CNG and LNG. This supports over 822,000 households and thousands of industrial clients. To reach remote areas, PGN uses models like the CNG clustering in Sleman, Yogyakarta. As part of President Prabowo Subianto’s National Priority Program, the Indonesian Presidential Staff Office (KSP) has set a target to complete 1 million household gas networks (jargas) by 2028 to reduce reliance on LPG imports, which currently meet approximately 80 percent of national demand.

To further mitigate LPG import dependence, which reaches between 7 and 8 million tons annually, the Indonesian government is preparing to introduce 3kg capacity compressed natural gas (CNG) as a cheaper alternative. Minister of Energy and Mineral Resources Bahlil Lahadalia stated that CNG could be “30% to 40% less expensive than LPG”.

In terms of environmental impact, PGN reported a significant reduction in emissions, achieving a decrease of 29,574.87 tons of CO2 equivalent through August 2026, a figure 35.3% above the company's established target.

Regional efforts continue with plans for 119,379 connections across 15 regencies for 2025-2026, including projects in East Java and West Java. In the power sector, PT PLN Energi Gas is managing gas distribution to connect upstream sources with power plants, with gas demand for power generation projected to rise by approximately 4.5% annually through 2034.

Entities

Ministry of Energy and Mineral Resources · PT Perusahaan Gas Negara (Persero) Tbk · Pertamina Patra Niaga · Pertamina · Bahlil Lahadalia

Timeline

  1. [BUSINESS] 4 sources
    PGN reports emission reductions as Indonesia prepares CNG alternative to LPG

    PGN reports exceeding decarbonization targets, while the Indonesian government prepares to introduce cheaper CNG as an alternative to LPG to reduce import dependency.

  2. [BUSINESS] 7 sources
    Indonesia energy ministry coordinates fuel distribution and subsidy oversight

    Indonesia's energy ministry is coordinating fuel distribution in South Sulawesi, addressing illegal subsidy hoarding, and preparing CNG as a cheaper LPG alternative while targeting full village electrification.

  3. [BUSINESS] 2 sources
    Depok to receive gas network expansion for 156,000 households

    Indonesia's Ministry of Energy and Mineral Resources plans to expand natural gas networks to 156,000 households in Depok, targeting the Tapos, Sukmajaya, Cimanggis, and Cilodong districts.

  4. [BUSINESS] 7 sources
    PGN expands gas network in Surabaya and Gresik

    PGN is expanding its GasKita gas network in Surabaya and Gresik, targeting nearly 60,000 household connections between 2025 and 2026.

  5. [BUSINESS] 4 sources
    Indonesia targets 1 million household gas connections by 2028

    Indonesia aims to complete 1 million household gas network connections by 2028 to reduce LPG imports and support energy self-sufficiency, with thousands of connections already completed in Gresik.

  6. [BUSINESS] 2 sources
    PLN strengthens energy infrastructure security and supply readiness in Indonesia

    PLN subsidiaries are strengthening energy security in Indonesia through new security protocols for LNG Tarakan facilities and ensuring stable primary energy and biomass supplies for the Bolok power plant.

  7. [BUSINESS] 2 sources
    Indonesian legislators address industrial gas supply and infrastructure

    Indonesian lawmakers are addressing industrial gas supply shortages and optimizing the Semarang–Indramayu gas network to boost manufacturing capacity and economic growth along the Pantura coast.

  8. [BUSINESS] 4 sources
    Pertamina integrates global LNG sources to bolster Indonesia energy security

    Pertamina is integrating domestic and global LNG sources to bolster Indonesia's energy security, while economists urge supply chain and infrastructure improvements to ensure affordability and accessibility.

  9. [BUSINESS] 2 sources
    PGN expands natural gas market through infrastructure and connectivity

    PGN is expanding its natural gas market in Indonesia by optimizing its 33,000 km pipeline network and utilizing CNG and LNG solutions to reach underserved regions and diverse customer segments.

  10. [BUSINESS] 2 sources
    PLN Energi Primer Indonesia develops LNG network for Nusa Tenggara

    PLN EPI is developing an LNG logistics network in Nusa Tenggara to supply 477 MW of power capacity by 2029, aiming to replace fuel oil with gas to reduce emissions and improve energy reliability.

  11. [BUSINESS] 2 sources
    PGN secures 5.45 BBTUD gas supply from Tungkal Working Area

    PGN has signed an agreement with Mont D’Or Oil Tungkal Limited to secure 5.45 BBTUD of gas from Jambi for 2026–2034 to bolster Indonesia's domestic energy security.

  12. [BUSINESS] 2 sources
    PT PLN Energi Gas manages Indonesia's gas supply chain

    PT PLN Energi Gas is managing Indonesia's energy supply chain, with gas demand for power plants projected to grow 4.5% annually through 2034, necessitating increased LNG logistics.

  13. [BUSINESS] 3 sources
    PGN expands gas pipeline use to hotels and UMKM in Lumajang, Indonesia

    PGN plans to extend its piped gas network in Lumajang, Indonesia, to hotels, restaurants, cafés and UMKM, citing high public interest and LPG restrictions, while offering mobile and WhatsApp meter services.

Sources

antaranews.com · beritajatim.com · beritamuria.com · bisnis.liputan6.com · cnbcindonesia.com · dunia-energi.com · ekbis.sindonews.com · en.antaranews.com · halosemarang.id · hargo.co.id · harianjogja.com · jawapos.com · kabartarakan.com · katadata.co.id · m.jpnn.com · medcom.id · mediaasuransinews.co.id · mediabanten.com · mediaindonesia.com · okezone.com · pendidikan.harianjogja.com · portalmedia.id · republika.co.id · rri.co.id · ruangenergi.com · senggang.republika.co.id · suarainvestor.com · tambang.co.id · telko.id · viva.co.id

This summary has been updated 12 times: see revision history