Jakarta, CNBC Indonesia – The Ministry of Energy and Mineral Resources (ESDM) predicts that the target of building a natural gas distribution network for households (jargas) of 2.5 million household connections (SR) in 2024 will not be achieved.
This was stated by the Director of Oil and Gas Infrastructure Planning and Development of the Ministry of Energy and Mineral Resources, Laode Sulaeman. Even so, his party is still working to ensure additional construction of gas lines this year.
“This year's target will not reach 2.5 million SR. But we are trying to add additional gas lines in 2024. We will pursue it as much as possible. What is also being pushed is not only from the APBN, but from PGN we will also build additional gas lines in 2024 as well,” he said after the Press Conference on 2023 Performance Achievements and 2024 Work Plans of the Directorate General of Oil and Gas in Jakarta, Tuesday (16/1/2024).
Meanwhile, Laode assesses that private involvement in the construction of gas networks through the Government Cooperation with Business Entities (KPBU) scheme has not yet produced results. In fact, it is hoped that this scheme can help the government in realizing the construction of gas pipeline projects.
“No PPP has been successful yet. We only want to start with around 300,000 SR. But it will take another 1.5 years to tender it. It will be auctioned later. BUMN and the private sector can participate,” he said.
As is known, the government is targeting the construction of gas lines for households to reach 2.5 million household connections (SR) by 2024. This number has decreased compared to the initial plan which was targeted at 4 million SR.
Minister of Energy and Mineral Resources, Arifin Tasrif, said that the reduction took into account the progress of gas pipeline construction that has been underway to date. So far, only around 800 thousand SR have been built.
“The government should have 4 million connections in 2024 but now it is still below 800 thousand because only the APBN and PGN are working,” said Arifin at the Ministry of Energy and Mineral Resources Building, Friday (13/10/2023).
Therefore, the government will return to using the State Revenue and Expenditure Budget (APBN) which was previously no longer used. Then, the government will also encourage private business entities (Government Business Entity Cooperation/KPBU) to be involved in providing household gas infrastructure.
Thus, the government will revise Presidential Regulation (Perpres) Number 6 of 2019 concerning the Provision and Distribution of Natural Gas Through Natural Gas Transmission and/or Distribution Networks for Households and Small Customers.
“With the existing Presidential Decree, PPP is not included in the scheme, now the Presidential Decree will be revised, so that PPP can work, so business entities can run, with this we can beat that target, so apart from PGN's portion, there will be PPP later, we will from the Ministry of Energy and Mineral Resources,” said Arifin.
[Gambas:Video CNBC]
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(wia)