Indonesian Political, Business & Finance News

Approved! This Rp 2.7 Trillion Pipeline Project Officially Delivers First Gas

| Source: CNBC Translated from Indonesian | Energy
Approved! This Rp 2.7 Trillion Pipeline Project Officially Delivers First Gas
Image: CNBC

The Ministry of Energy and Mineral Resources (ESDM) has officially initiated the first gas flow (gas-in) for the Cirebon-Semarang Gas Transmission Pipeline (Cisem) Phase II project. This project, with an investment value of Rp 2.7 trillion, represents a crucial step for the government in bolstering national energy resilience while promoting industrial growth. The inauguration was conducted by Deputy Minister of ESDM Yuliot Tanjung on Wednesday (18/3/2026), following the completion of all Engineering, Procurement, and Construction (EPC) work on 5 March 2026, marked by the signing of Handover Acceptance Minutes (BAST) 1. Yuliot emphasised that the Cisem Phase II project is part of the government’s strategic programme to achieve energy independence. Furthermore, it is expected to accelerate the development of industrial zones, commercial areas, and new economic growth centres in Java. “With the availability of energy, this will certainly drive faster growth in the regions traversed by this vital infrastructure,” Yuliot stated during the event in Batang on Wednesday (18/3/2026). Yuliot further noted that the development model using state budget (APBN) financing is key to maintaining industrial competitiveness. At least with direct government investment, the burden of gas transportation costs or toll fees can be reduced, making gas prices for industry more competitive. Meanwhile, at the same location, the Director General of Oil and Natural Gas at the Ministry of ESDM, Laode Sulaiman, assured the operational readiness of the pipeline after a series of technical tests, including leak testing. According to him, the test results showed no leaks, so the pipeline is ready to function in delivering gas to consumers in western Java. “Alhamdulillah, the test results found no leaks, so the pipeline can function well. And this is ready for us to deliver gas to consumers who need it in western Java later,” Laode said at the same location. He also revealed that several users have expressed initial commitments to utilise this infrastructure, including the Balongan Refinery, PT Cikarang Listrindo, and several other industries. “That is what we reported, and all technical aspects have also been completed. The contractor worked well, and construction management also performed effectively,” Laode added. For information, the Cisem Phase II project spans approximately 242 kilometres and is part of the Strategic National Project (PSN). Construction began on 6 August 2024 until 5 March 2026, with a total of 4.65 million safe working hours. From an economic impact perspective, the project absorbed up to 1,981 workers at the peak of construction and recorded a domestic component level (TKDN) of 60.58%. The management of the Cisem Phase II pipeline is assigned to LEMIGAS based on Ministerial Decree No. 125.K/MG.01/MEM.M/2026. Going forward, LEMIGAS will collaborate with partners to optimise the utilisation of these assets. The gas supply source for this pipeline comes from the Jambaran Tiung Biru (JTB) field.

View JSON | Print