PGN Boosts Business Efficiency and Competitiveness Through Sustainable Decarbonisation
PT Perusahaan Gas Negara (Persero) Tbk (PGN) is continuing to strengthen the implementation of decarbonisation as part of its sustainable business strategy. By August 2026, its Gas Subholding had achieved an emissions reduction of 29,574.87 tonnes of CO₂ equivalent (tCO₂eq), 35.3% above the target set for the period.
The achievement reflects a positive trend in the implementation of decarbonisation programmes across the Gas Subholding Group. It also provides a foundation for the company to strengthen its emissions-reduction initiatives for 2027–2030.
PGN Director of Strategy and Business Development Mirza Mahendra said decarbonisation had become an important part of the company’s business strategy. PGN’s efforts are not limited to supporting emissions reductions, but also aim to improve operational efficiency, maintain competitiveness and anticipate climate-related and regulatory risks.
“Emissions reductions achieved by August 2026 show that the various decarbonisation initiatives implemented by the Gas Subholding are producing positive results. For PGN, decarbonisation is not merely a way to fulfil environmental commitments; it is part of a business strategy to improve efficiency, strengthen competitiveness and create long-term value for the company,” Mirza said in a statement on Friday (16 October 2026).
PGN is also continuing to strengthen the implementation of decarbonisation programmes across the Gas Subholding Group. These efforts include improving energy efficiency at operational facilities, reducing gas losses and optimising the use of lower-emission energy.
The initiatives are intended to improve the efficiency of gas infrastructure management and operations. They also support the government’s commitment to achieve net-zero emissions (NZE) by 2060 or earlier.
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.
As well as delivering environmental benefits, decarbonisation could create economic value for the company. Calculations for its 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 generate cost savings while also delivering environmental benefits.
“Through various energy-efficiency and operational optimisation programmes, we are seeking to ensure that emissions-reduction efforts go hand in hand with higher productivity and lower costs. 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. The event brought together representatives from PGN and its Gas Subholding Group entities, 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. They worked on an integrated emissions-reduction plan aligned with the 2027–2030 Corporate Long-Term Plan (RJPP).
The proposed initiatives also draw on the Gas Subholding ESG Roadmap 2025–2034, which provides a framework for the company’s sustainability programmes. The proposals will be finalised and submitted to management to ensure implementation is measurable, integrated and sustainable.
Mirza stressed that the involvement of all Gas Subholding Group entities was essential to ensuring the decarbonisation programme was consistently implemented 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 respond to 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.