Focus on Infrastructure and Energy Transition, PGN Prepares US$338 Million Capex in 2025

Jakarta – PT Perusahaan Gas Negara Tbk (PGN)

has allocated a capital expenditure of US$338 million for 2025, with a primary focus on developing natural gas infrastructure and supporting the national energy transition. This initiative aligns with PGN's commitment to sustainability and strengthening national energy resilience.

"Through optimal operational management and prudent financial strategies, we believe that PGN can continue to be a key driver of Indonesia's energy transition," said PGN President Director Arief Setiawan Handoko during an Analyst Briefing last Thursday (January 23, 2025).

Approximately 67% of the capex will be allocated to expanding the natural gas network, including 200,000 new connections in Sumatra and Java, which have the potential to save the government hundreds of billions of rupiah in LPG subsidies. "In addition to reducing LPG imports, the gas network provides a more efficient, clean, and sustainable energy solution for the public," Arief explained.

PGN Finance Director Fadjar Harianto Widodo added that PGN targets 12% growth in gas distribution volume compared to the previous year, driven by demand from key industrial zones in Java and Sumatra. Meanwhile, the development of strategic gas pipelines, including the Tegal–Cilacap Gas Pipeline and the Cikampek–Plumpang Oil Pipeline, will support fuel distribution from the Cikampek Fuel Terminal to Plumpang. Additionally, PGN continues its international LNG trading business based on existing contracts to strengthen its global market presence.

"We face gas supply challenges, but we remain optimistic about managing them effectively through innovation and collaboration with all stakeholders," said Fadjar.

To support sustainability, PGN aims to reduce emissions by 4,372 tons of CO2 equivalent in 2025 through operational efficiency and environmentally friendly technology, including biomethane development and diversification of gas derivative products.

Meanwhile, 33% of the capex will be allocated to upstream oil and gas development. PGN will continue exploration in the Pangkah, Ketapang, and Fasken working areas, as well as apply for an extension of the Muara Bakau working area contract.

"With strong innovation and collaboration, we are optimistic about overcoming industry challenges and global market dynamics to ensure PGN’s contribution to a greener energy future for Indonesia," Arief concluded.

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