PGAS New Business Expansion: Investment Opportunities & Stock Recommendations

JAKARTA. PT Perusahaan Gas Negara Tbk (PGAS) has announced a strategic move to expand its business scope through its subsidiary, PT Pertamina Gas (Pertagas). This expansion marks PGAS’s commitment to addressing the evolving dynamics of the energy market.

In an official announcement to the Indonesia Stock Exchange (BEI), PGAS stated that Pertagas’s new business activities will include Indonesian Standard Industrial Classification (KBLI) 20112, namely the industrial gas industry. Pertagas itself is a significant contributor to PGAS’s revenue, accounting for more than 20%.

“This change is driven by business developments increasingly focused on environmentally friendly energy, in line with the Net Zero Emission target for 2060,” explained PGAS Corporate Secretary Fajriyah Usman in a written statement released on Friday (17/4/2026).

To realise this ambitious plan, PGAS will seek approval from shareholders at the Annual General Meeting of Shareholders (AGMS) scheduled for 22 May 2026.

Rising Demand, Perusahaan Gas Negara (PGAS) Targets Gas Trading Volume of 877 BBTUD

Muhammad Wafi, Head of Research at Korea Investment & Sekuritas Indonesia, views this expansion positively for PGAS’s business sustainability. According to him, PGAS has the potential to generate revenue outside its regulated pipeline gas trading business. Additionally, this step supports the company’s achievement of Environmental, Social, and Governance (ESG) targets.

“However, the consequence is that the initial capital expenditure (capex) required will be quite substantial,” Wafi stated on the same day.

Nafan Aji Gusta, Senior Market Analyst at Mirae Asset Sekuritas Indonesia, also provided an interesting perspective on PGAS’s latest corporate action. He emphasised that PGAS has opportunities to develop more environmentally friendly natural gas for industrial sector customers, as part of efforts to meet ESG targets.

“PGAS can develop natural gas derivative products from blue and green hydrogen,” he added.

Overall, PGAS’s performance prospects in 2026 are predicted to face greater challenges. Rising global oil and natural gas prices will impact upstream gas prices, which will burden PGAS due to its binding under the Specific Natural Gas Price (HGBT) regulation for industrial customers. This HGBT policy limits PGAS’s ability to adjust selling prices to end customers.

Net Profit Corrected in 2025, See PGN (PGAS) Stock Recommendations

“PGAS’s profit margins could be pressured,” Wafi added.

Furthermore, Nafan also cautioned PGAS to be wary of the impact of rupiah depreciation. Although PGAS’s revenue is dominated by US dollar denominations, a weakening rupiah can still affect PGAS’s ability to pay operational costs and foreign currency debt.

Looking ahead, PGAS needs to actively expand the construction of natural gas transmission pipeline networks, both for industrial and household customers. This aims to improve the efficiency of natural gas distribution.

Nafan recommends accumulating buy of PGAS shares with a target price of Rp 2,090 per share.

Meanwhile, Wafi suggests holding PGAS shares with a target price of Rp 1,500 per share.

PGN (PGAS) Increasingly Solid in 2026, Analysts Champion Midstream–Downstream and LNG Role