PGN (PGAS) to Add New Business Activities: See Stock Recommendations

JAKARTA. PT Perusahaan Gas Negara Tbk (PGAS) has announced plans to add new business activities to be carried out by its subsidiary, PT Pertamina Gas (Pertagas). In a disclosure to the Indonesia Stock Exchange (BEI), PGAS decided to amend the addition of business activities with the Indonesian Standard Industrial Classification (KBLI) 20112, namely the industrial gas industry operated by Pertagas. This company contributes more than 20% to PGAS’s total revenue. “The amendment to the addition of Pertagas’s business activities is driven by business dynamics increasingly focused on developing environmentally friendly energy, in line with the 2060 Net Zero Emission target,” wrote PGAS Corporate Secretary Fajriyah Usman in an official statement on Friday (17/4/2026). To realise this, PGAS will seek shareholder approval through the Annual General Meeting of Shareholders (AGMS) on 22 May 2026. “The downside is that the initial capital expenditure burden will be high,” she said on Friday (17/4/2026). Senior Market Analyst at Mirae Asset Sekuritas Indonesia, Nafan Aji Gusta, views PGAS’s latest corporate action as quite attractive. This is because PGAS has the opportunity to develop more environmentally friendly natural gas for its industrial sector customers as part of fulfilling ESG targets. “PGAS can develop natural gas derivative products from blue and green hydrogen,” he said on Friday (17/4/2026). Overall, PGAS’s performance prospects will be more challenging in 2026. This is considering the surge in global oil and natural gas prices, which will impact upstream gas prices, burdening PGAS which is bound by the Specific Natural Gas Price (HGBT) regulation for industrial customers. This policy will limit PGAS’s ability to adjust selling prices to end customers. Meanwhile, according to Nafan, PGAS also needs to be wary of the effects of rupiah depreciation. Although PGAS’s revenue is denominated in US dollars, rupiah weakening can still affect PGAS’s ability to pay operational expenses or foreign currency debt. Going forward, PGAS also needs to actively pursue expansion in building transmission gas pipeline networks, both for industrial and household customers. This is to enhance PGAS’s ability to distribute natural gas more efficiently. Nafan recommends accumulating PGAS shares with a target price of Rp 2,090 per share. Wafi suggests holding PGAS shares with a target price of Rp 1,500 per share.