Support for the Free Nutritious Meal Program, PGN and BGN Collaborate on Natural Gas Supply

Jakarta – PT PGN Tbk and the National Nutrition Agency (BGN) have entered into a collaboration to supply natural gas in support of the Free Nutritious Meal (MBG) program. The collaboration was formalized through the signing of a Memorandum of Understanding by the Head of BGN, Dadan Hindayana, and PGN's President Director, Arief Setiawan Handoko, which took effect on December 2, 2024.

This collaboration is also a follow-up to the assignment given by Minister of SOEs Erick Thohir to eight state-owned enterprises, including PGN, to fully support the collaboration between the Ministry of SOEs and the National Nutrition Agency through the MBG program initiated by President Prabowo. "PGN is preparing gas network infrastructure in urban areas to provide energy for nutrition service units to facilitate the cooking of nutritious meals," said Erick in a press release from the Ministry of SOEs (November 8, 2024).

The Head of BGN, Dadan Hindayana, explained that the collaboration with PGN is part of the implementation of energy self-sufficiency as well as the MBG program. BGN estimates that there will be 30,000 Nutrition Service Units across Indonesia, and natural gas is a key component for cooking in these kitchens.

"This collaboration is highly potential as part of the MBG program implementation. We will work together to make the Nutrition Service Units the entry point for utilizing natural gas. Hopefully, we can maximize the use of natural gas through the MBG program and reduce subsidies for LPG imports," said Dadan.

PGN is committed to supporting the collaboration between the Ministry of SOEs and BGN in the MBG program. PGN's support will be provided in line with its capabilities in supplying natural gas in Indonesia. Under this partnership, PGN will supply natural gas via both pipeline and Compressed Natural Gas (CNG) modes, along with the supporting infrastructure in various existing PGN regions.

"We greatly appreciate the opportunity to collaborate with BGN. PGN is honored to contribute to the success of the government's program. We will fully support the use of natural gas as an energy source in the provision of nutritious meals by the Nutrition Service Units. PGN hopes this support will provide clean energy services and increase the utilization of domestic energy, in line with the government's Asta Cita goals, particularly energy self-sufficiency," said PGN President Director Arief Setiawan Handoko.

PGN currently operates in 17 provinces, covering 73 districts/cities across Indonesia, integrated with both pipeline and beyond-pipeline infrastructure. The use of natural gas through beyond-pipeline infrastructure, or CNG, will allow PGN to meet the energy needs of Nutrition Service Units located far from gas pipeline networks.

Natural gas is an environmentally friendly energy source compared to other fossil fuels, making it an added value when used to meet the nutritional needs of children in Indonesia. Additionally, natural gas sourced from Indonesia's land will be used to meet the country's energy needs, supporting energy independence and reducing energy subsidy burdens.

"PGN is committed to being a strategic partner of the government in the establishment of Nutrition Service Units. We hope this collaboration will have lasting benefits, particularly in preparing a highly competent generation for Indonesia's Golden Vision 2045 and creating opportunities for PGN to contribute to Indonesia's energy resilience," concluded Arief.

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