Indonesian Political, Business & Finance News

ESDM Targets 160,000 Household Gas Connections in 2026

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Energy

The government is targeting the construction of 160,000 household natural gas network (jargas) connections in 2026. The programme will utilise a Compressed Natural Gas (CNG) clustering or beyond-pipeline scheme, enabling gas distribution to areas not yet reached by pipeline infrastructure.

Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot Tanjung conveyed this during a review of CNG-based jargas implementation in Sleman Regency, Special Region of Yogyakarta, on Friday, 19 June 2026. According to him, this gas distribution model offers a solution to accelerate equitable access to clean energy without waiting for the construction of natural gas transmission pipelines.

“For 2026, we are targeting 160,000 household connections in various cities. The tender process will take place at the end of July, while readiness assessments for each region are still being finalised,” Yuliot said, as quoted from a written statement on Saturday, 20 June 2026.

He explained that the construction of jargas connections will be spread across Java, Sumatra, and Kalimantan, taking into account the proximity of each area to gas sources. All these connections will use a CNG-based distribution system.

In Sleman, the CNG-based jargas currently serves 4,545 households, six small business customers, and four commercial customers. Supporting infrastructure includes a gas distribution network spanning more than 141 kilometres. Average natural gas distribution reaches approximately 84,000 cubic metres per month, equivalent to the utilisation of around 64 metric tonnes of LPG per month.

The use of jargas in Sleman has also begun to target the productive sector. One commercial customer is a restaurant. The use of CNG is claimed to save energy costs by around 30 to 33 percent compared to LPG.

Yuliot said the government plans to significantly increase jargas construction in the following year. Through support from the State Budget (APBN), the government is targeting the construction of one million household connections in 2027. “For 2028, the target of one million household connections should already be achievable,” he stated.

Currently, jargas has reached around 827,000 household connections spread across 18 provinces and 74 regencies/cities. In the 2026–2029 National Medium-Term Development Plan (RPJMN), the government is targeting the construction of approximately 350,000 household connections per year through various funding schemes.

PGN President Director Arief K. Risdianto said the success of the CNG-based jargas project in Sleman demonstrates that CNG Clustering technology can be a solution to expand natural gas access in areas not yet connected to the main transmission network.

According to Arief, safety is a primary concern in operating the system. CNG gas pressurised at around 200 bar is distributed through a pressure regulating system (PRS), making it safe for use by household customers.

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