Tanjung Enim CNG Project Accelerated, Palace Confirms Job Creation for Local Residents
The acceleration of the CNG Mother Station development in Tanjung Enim, Muara Enim Regency, South Sumatra, is aimed not only at strengthening national energy security but is also expected to serve as a driver for the regional economy. The government believes this national strategic project will create new jobs and stimulate economic activity for the communities surrounding the development area.
Chief of Staff to the President, Dudung Abdurachman, stated that the most tangible benefits the community will experience from the Coal Bed Methane (CBM) development project are the creation of job opportunities and the strengthening of national energy security. “The most dominant impact that will certainly be felt is the opening of employment opportunities. Then, national energy security; that is it,” Dudung said in a statement on Saturday, 4 July 2026.
The government aims to ensure that the project’s construction is not delayed by administrative processes. The completion of various requirements will be carried out in parallel with project implementation preparations to ensure construction targets are met according to schedule. “As soon as possible. We will not wait for administration to be completed but will proceed in parallel,” Dudung remarked when asked about the project’s commencement timeline.
The selection of Muara Enim Regency as the construction site is intentional. The area is considered to possess vast energy resource reserves, making it a strategic region for domestic gas-based energy development. “This is because South Sumatra has very abundant resources, both coal and natural gas,” said Dudung.
The CBM development in Tanjung Enim is one of the government’s flagship projects to strengthen the national energy supply while reducing dependence on LPG imports. The region is estimated to hold CBM potential of approximately 9.7 trillion cubic feet (TCF), making it one of the largest areas for non-conventional oil and gas potential in Indonesia.
Through the construction of the CNG Mother Station, the produced gas will be compressed before being distributed to various sectors, ranging from household needs to industry. This infrastructure is also projected to strengthen the national gas supply chain and increase the utilisation of domestic energy. PGN, as Pertamina’s Gas Subholding, has prepared a phased gas distribution scheme, starting from 1 million standard cubic feet per day (MMSCFD) and scaling up to 25 MMSCFD.