Indonesian Political, Business & Finance News

Government Accelerates Household Gas Network Development

| Source: ANTARA_ID Translated from Indonesian | Energy
Government Accelerates Household Gas Network Development
Image: ANTARA_ID

Jakarta (ANTARA) - Head of the Government Communication Body Muhammad Qodari announced the government is accelerating the development of household gas networks to strengthen national energy security and reduce public dependence on LPG. Qodari stated the development target for the 2025–2026 period is 119,379 house connections spread across 15 districts and cities. This target increased from the previous 115,264 connections following the addition of 1,765 connections in Jambi City, 2,000 connections in Bontang City, and 350 connections in Gresik Regency. Based on data from the Ministry of Energy and Mineral Resources as of 3 August 2026, the construction of these 119,379 house connections has entered the completion phase. The project, contracted from 20 May to 31 December 2026, is still in its early stages, including route surveys, determining the location of gas pressure regulating and metering stations, and registering prospective customers. Cumulatively up to 2025, the national gas network development has reached 949,008 house connections, comprising 703,308 connections funded by the state budget and 245,700 connections through non-state budget funding. To accelerate service expansion, the government is preparing the development of 959,232 house connections for the 2026–2028 period across eight districts and cities. The Front End Engineering Design and Detail Engineering Design Construction documents for the project have been prepared and are now entering the implementation preparation stage. Thus, the total target for house connections from 2025 to 2028 is 1,119,654. To support this target, the government has prepared three funding schemes: the state budget, Government and Business Entity Cooperation, and state-owned enterprise investment. In 2025, 100,000 connections are funded through state-owned enterprise investment. For 2026, the government targets 150,000 connections via the state budget, 50,000 through cooperation schemes, and 100,000 through state-owned enterprise investment. Overall, gas network development for the 2025–2029 period is projected to reach 1.45 million house connections. Qodari added that budget requirements are calculated using an approach of Rp10 million per connection, a value that will be adjusted based on technical planning results, field conditions, development locations, and procurement outcomes. He assured that domestic gas availability is sufficient to support the accelerated development of household gas networks, noting that approximately 70–75 percent of national gas production is allocated for domestic needs. The government continues to ensure supply readiness based on gas source availability and allocation, customer demand volume and profile, supply continuity throughout the operational life, and the readiness of transmission and distribution networks.

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