Danantara reviews new structure for Pertagas and PGN
The Head of the State-Owned Enterprises Agency and Chief Operating Officer (COO) of Danantara Indonesia, Dony Oskaria, stated that Danantara is still reviewing the structure of gas companies, including the possibility of merging PT Pertamina Gas (Pertagas) with PT Perusahaan Gas Negara Tbk (PGN).
He noted that several structural options are being considered. The government will select the scheme deemed to provide the greatest benefit for Indonesia.
“We are currently studying what the pattern will be. But the most important thing is that our gas companies will operate in the midstream and downstream sectors,” Dony said at the Presidential Palace Complex, Jakarta, on Wednesday.
Dony explained that the study includes structural options between Pertagas, PGN, and other related companies. According to him, no decision has yet been made regarding which company will serve as the parent or holding company.
“I cannot yet say which one will become the holding company. We are exploring several structural options to determine the best path between Pertages, PGN, and others. We are conducting this study with the core objective of finding what is best for Indonesia,” he added.
He emphasised that determining the structure will involve a cost-benefit analysis. Every option will be compared before the government decides on the final structure to be implemented.
In addition to the corporate restructuring, Dony stated that the transformation of gas companies is also aimed at strengthening midstream and downstream businesses. One of the plans being prepared is the distribution of gas through networks directly to households.
According to him, the government will even conduct trials for distributing compressed natural gas (CNG) directly to homes in several cities.
This step is expected to increase the utilisation of domestic gas while simultaneously reducing dependence on imported LPG.
Dony noted that while Indonesia possesses significant gas resources, a large portion of LPG requirements is still met through imports. Therefore, changes to the business model and gas infrastructure are considered necessary to optimise the use of domestic gas.
“Imagine how much we spend on LPG subsidies and the foreign exchange required for imports. This is indeed a long-term transformation we are undertaking, changing the business models one by one,” he concluded.