PGN Optimises Gas Infrastructure to Safeguard Indonesia's Energy Security
PT Perusahaan Gas Negara (Persero) Tbk (PGN), acting as the Gas Subholding of Pertamina, continues to strive towards strengthening business sustainability and national energy security through the optimisation of national energy infrastructure, enhancement of operational reliability, and the development of new growth drivers. This move is part of the company’s strategy to maintain sustainable performance while supporting the ever-evolving national energy requirements.
PGN Corporate Secretary Fajriyah Usman noted that amidst global economic and energy dynamics, PGN remains reliant on its fundamental business strengths, supported by a strategic infrastructure network, a vast customer base, and the company’s vital position within the national energy supply chain. The primary focus is to ensure that existing infrastructure is utilised optimally to support national energy needs and create sustainable added value.
With total assets of approximately US$6.2 billion, a pipeline network exceeding 33,000 kilometres, and a customer base of over 825,000, PGN manages an integrated downstream natural gas infrastructure platform serving various segments across Indonesia. This infrastructure serves as the backbone for natural gas distribution to strategic sectors, including households, small businesses, commercial enterprises, industries, and power plants. Currently, PGN holds over a 91% share of the national natural gas trading market, reflecting its critical role in supporting domestic energy needs.
Beyond optimising existing infrastructure, PGN is executing several strategic projects to strengthen national energy connectivity and unlock new growth opportunities. This includes developing integrated infrastructure, expanding household gas networks, and increasing the utilisation of existing energy assets and facilities. Through its subsidiary, PT Pertamina Gas (Pertagas), PGN has also been entrusted to operate Phase II of the Cirebon-Semarang (CISEM) Gas Transmission Pipeline. This infrastructure will strengthen inter-regional gas distribution connectivity and support broader domestic gas utilisation for the industrial and electricity sectors, particularly in enhancing supply flexibility for western Java.
Operationally, PGN’s business activities remain robust. In the first quarter of 2026, PGN recorded a natural gas distribution volume of 777 BBTUD and a transmission volume of 1,539 MMSCFD. The company is also supported by a healthy financial structure to execute its long-term growth agenda. As of the end of March 2026, the company’s debt-to-equity ratio stood at approximately 29%, with cash and cash equivalents at around US$1.36 billion. Furthermore, the company recorded an EBITDA-to-interest expense ratio of 21 times, reflecting strong financing capability and financial flexibility. As a commitment to creating sustainable value for shareholders, PGN maintained a dividend payout ratio of 80% of the profit attributable to the parent entity for the 2025 fiscal year.