ESDM Ministry Allocates Rp5.2 Trillion for Household Gas Network in 2027

The Ministry of Energy and Mineral Resources (ESDM) has officially allocated Rp5.2 trillion in the 2027 State Budget to continue the development of household gas network (jargas) infrastructure. Director General of Minerals and Coal, Tri Winarno, stated that the funding is intended to build almost one million new household connections. “The multi-year contract programme for expanding household gas networks for the 2026-2028 fiscal year, along with supervisory consultants, is valued at Rp5.2 trillion for 959,232 household connections,” Tri said while representing Echelon I officials at a hearing with House of Representatives (DPR) Commission XII in Jakarta on Monday.

Based on the Joint Letter of the Minister of Finance and the Minister of National Development Planning, the total indicative budget ceiling for the ESDM Ministry in 2027 is set at Rp27.33 trillion. A significant 82 percent of this, or Rp22.48 trillion, is prioritised for strategic programmes and physical infrastructure. Beyond household gas networks, the government is also focusing on the construction of national gas transmission pipelines, including the Cirebon–Semarang (Cisem) and Dumai–Sei Mangkei (Dusem) projects.

Minister of Energy and Mineral Resources Bahlil Lahadalia previously highlighted that the expansion of the jargas programme is a key strategy to reduce dependency on imported liquefied petroleum gas (LPG). He noted that the use of piped natural gas is significantly more economical for consumers, offering savings of up to 40 percent compared to LPG cylinders. To date, the ministry has recorded 943,000 installed household connections. The DPR has expressed full support for efforts to cut LPG imports, while urging the government to prioritise the acceleration of the jargas development.