Indonesian Political, Business & Finance News

East Java Prosecutor's Office and PGN Strengthen National Energy Infrastructure Governance

| Source: CNBC Translated from Indonesian | Infrastructure
East Java Prosecutor's Office and PGN Strengthen National Energy Infrastructure Governance
Image: CNBC

The East Java High Prosecutor’s Office, in collaboration with PT Perusahaan Gas Negara (Persero) Tbk (PGN) Sales and Operation Region III, has strengthened its strategic synergy through the signing of a Memorandum of Understanding (MoU) in the field of Civil and State Administrative Law (Datun). This cooperation serves as a strategic step to reinforce the implementation of Good Corporate Governance (GCG), increase legal certainty, and support the sustainable development of PGN’s natural gas infrastructure in the East Java region.

The Head of the East Java High Prosecutor’s Office, Abdul Qohar, emphasised the importance of the strategic partnership between the Prosecutor’s Office and PGN, as a state-owned enterprise playing a vital role in the national energy system. “PGN holds a crucial position in maintaining national energy security while driving economic growth. Therefore, strengthening governance and legal certainty is a primary prerequisite for business sustainability and future energy infrastructure development,” Abdul stated in an official release.

Meanwhile, PGN’s Director of Infrastructure and Technology, Hery Murahmanta, expressed appreciation for East Java being selected as the first region for this cooperation signing. He noted that the collaboration is expected to further strengthen legal certainty in the provision of services and the development of PGN’s natural gas infrastructure. “This collaboration is a preventive measure to ensure that every stage of construction, operation, and development of natural gas infrastructure complies with applicable regulations and the principles of Good Corporate Governance. Legal assistance from the Prosecutor’s Office will further strengthen corporate governance, minimise potential legal risks, and support the provision of reliable, safe, and sustainable gas services for both the public and the industrial sector,” said Hery.

East Java is one of PGN’s strategic operational regions, with a natural gas distribution network serving various customer segments, including industrial, commercial, residential, and power plants. Consequently, legal certainty in the development and management of infrastructure is a vital factor in maintaining the continuity of energy services to customers.

In addition to the signing of the MoU, the event included a Focus Group Discussion (FGD) featuring speakers from the Civil and State Administrative Law (Datun) and Special Crimes (Pidsus) divisions of the East Java High Prosecutor’s Office. The forum discussed strengthening GCG implementation, legal risk mitigation strategies, and understanding the boundaries between business risks and acts involving the abuse of authority in the execution of strategic projects.

This collaboration represents the commitment of the East Java High Prosecutor’s Office and PGN to building transparent, accountable, and sustainable corporate governance. Through this synergy, PGN hopes that the development of natural gas infrastructure in East Java can proceed more effectively, with strong legal certainty, supporting national energy security and economic growth.

The agreement was signed by the Head of the East Java High Prosecutor’s Office, Abdul Qohar, and the General Manager of Sales & Operation Region III of PGN, Hedi Hedianto, at the Sasana Adhyaksa Hall of the East Java High Prosecutor’s Office, witnessed by PGN’s Director of Infrastructure and Technology, Hery Murahmanta.

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