Reducing LPG Imports: Danantara Urges Pertagas to Develop National Gas Network
BPI Danantara Indonesia and the State-Owned Enterprise (SOE) Division have requested that PT Pertamina Gas (Pertagas) take a strategic role in the development of the national gas network (jargas), particularly to meet household energy requirements.
The Head of the SOE Division and COO of Danantara Indonesia, Dony Oskaria, stated that expanding the gas network could serve as an effort to reduce energy subsidies and decrease the outflow of foreign exchange used to meet LPG needs through imports.
“If we can achieve this in the future, I believe Pertamina Gas will act as an enabler for us to lower energy subsidies and, secondly, prevent our outflow deficit,” said Dony, quoting the official SOE Division Instagram, Wednesday (30/09/2026).
He noted that strengthening the gas network is key to optimising the use of domestic gas while reducing dependence on imported LPG. A more integrated gas network infrastructure is expected to create greater efficiency in meeting the public’s energy needs.
“The key lies in the gas network. This will be our focus moving forward. If we can implement this, we can save a significant amount of foreign exchange that would otherwise be wasted,” Dony added.
Dony has already summoned the Pertagas management team to discuss this matter.
Pertagas management has indicated that the company currently plays a vital role in operating gas transportation networks on Java Island. This includes the operation of the Cirebon-Semarang transmission pipeline, which was previously constructed by the Ministry of Energy and Mineral Resources (ESDM) using state budget (APBN) funding, with operations subsequently handed over to Pertagas through a tender mechanism.
To strengthen this role, Pertagas has been directed to prepare a national gas network masterplan to serve as a reference for future development. This masterplan will encompass a comprehensive development roadmap, including infrastructure readiness, business models, and market expansion strategies.
The development of the gas network could begin in major cities such as Jakarta and Surabaya, taking into account infrastructure readiness and market demand.
Strengthening the national gas network is expected to not only increase the utilisation of domestic gas but also create efficiency within the national energy system. With integrated infrastructure and appropriate market development, the gas network can become a crucial component in reducing reliance on imported LPG and easing the burden of energy subsidies.