PGN Boosts Business Efficiency and Competitiveness Through Decarbonisation
Jakarta, CNBC Indonesia – PT Perusahaan Gas Negara (Persero) Tbk (PGN), Pertamina’s Gas Subholding, is continuing to strengthen decarbonisation as part of its sustainable business strategy. By August 2026, the Gas Subholding had reduced emissions by 29,574.87 tonnes of CO₂ equivalent (tCO₂eq), 35.3% above the target set for that period.
The achievement reflects a positive trend in implementing decarbonisation programmes across the Gas Subholding Group and provides a basis for the company to reinforce emissions-reduction initiatives for 2027–2030.
PGN Director of Strategy and Business Development Mirza Mahendra said decarbonisation was an important part of the company’s business strategy, both in supporting emissions reductions and in improving operational efficiency, maintaining competitiveness, and anticipating climate-related and regulatory risks.
“Emissions reductions achieved by August 2026 show that the various decarbonisation initiatives undertaken by the Gas Subholding are delivering positive results. For PGN, decarbonisation is not merely about fulfilling environmental commitments; it is part of a business strategy to improve efficiency, strengthen competitiveness and create long-term value for the company,” Mirza said, according to a written statement on Friday (16 October 2026).
In line with this achievement, PGN is continuing to strengthen decarbonisation programmes across the Gas Subholding Group. These include improving energy efficiency at operational facilities, reducing gas losses and making better use of lower-emission energy.
The initiatives are intended to improve the management efficiency of natural gas infrastructure and operations, while supporting the government’s commitment to reach Net Zero Emissions (NZE) by 2060 or sooner.
Cumulatively, from 2025 to August 2026, the Gas Subholding recorded emissions reductions of more than 68,500 tCO₂eq, or around 15.7% of the company’s cumulative decarbonisation target through 2034. In addition to environmental benefits, decarbonisation could also generate economic value for the company.
Calculations for the decarbonisation programme put the Marginal Abatement Cost (MAC) at -US$0.19 thousand per tCO₂eq. The negative figure indicates that the portfolio of emissions-reduction initiatives could deliver cost savings as well as environmental benefits.
“Through various energy-efficiency and operational-optimisation programmes, we are working to ensure that emissions-reduction efforts go hand in hand with higher productivity and cost efficiency. Decarbonisation therefore not only benefits the environment, but also helps strengthen the company’s business fundamentals,” Mirza said.
To sustain this progress, PGN held the Gas Subholding Decarbonisation Workshop 2027–2030 in Jakarta on 7 October 2026. Representatives from PGN and its Gas Subholding Group entities took part, including PT Pertamina Gas, PT Perta Arun Gas, PT Saka Energi Indonesia, PT Permata Graha Nusantara, PT PGN LNG Indonesia, PT PGAS Solution, PT PGAS Telekomunikasi Nusantara and PT Gagas Energi Indonesia. The workshop aimed to develop an integrated emissions-reduction plan aligned with the 2027–2030 Corporate Long-Term Plan (RJPP).
The initiatives are also being developed in accordance with the Gas Subholding’s ESG Roadmap 2025–2034, which provides a framework for the company’s sustainability programmes. Proposed programmes will be finalised and submitted to management to ensure implementation is measurable, integrated and sustainable.
Mirza emphasised that the involvement of all Gas Subholding Group entities was essential to ensuring decarbonisation programmes were carried out consistently and had a tangible impact on company performance.
“Decarbonisation is no longer simply about reducing emissions. It is part of a business strategy to maintain efficiency and competitiveness, mitigate climate and regulatory risks, and meet the expectations of investors, customers and the public. Through collaboration across all Gas Subholding Group entities, we are committed to strengthening the implementation of measurable and sustainable decarbonisation initiatives,” Mirza said.