PGN and Ministry of Industry Synergy Targets Utilization Potential of 115 BBTUD Natural Gas in Industrial Zones

Jakarta – PT PGN Tbk, as the Subholding Gas of Pertamina, has established synergy with the Ministry of Industry (Kemenperin) to support the fulfillment of natural gas needs for industrial zones (KI). During a Forum Group Discussion held in Batam on August 24, 2024, Dewi Muliana, Director of Industrial Area Development, stated that the non-oil and gas processing industry grew by 4.64% in Q1 2024, contributing 72.39% to the national export value.

“The contribution of the non-oil and gas processing industry to the national GDP reached 17.47%, and continues to grow, as seen from the significant investments amounting to IDR 155.5 trillion, or 38.73% of Indonesia’s total investment in Q1 2024. The non-oil and gas industry also plays a major role in employment absorption, with 19.29 million people employed as of August 2023, an increase of 181 thousand people compared to August 2022,” said Dewi.

For long-term industrial sector development, Ministry of Industry has prepared a roadmap for 2025-2045, focusing on strengthening the structure and downstream industrial ecosystems starting in 2025, and from 2030-2034, focusing on industries based on medium-high tech resources, leading to increased product complexity. In the future, Indonesia is projected to become the center of the Global Value Chain and a hub for advanced manufacturing services in the regional level by 2040-2045.

To support this roadmap, Ministry of Industry has issued the vision and mission for national industrial development and regulations, including Government Regulation No. 20 of 2024 concerning Industrial Areas.

Rosa Permata Sari, Director of Strategy and Business Development at PGN, revealed that PGN is focusing on optimizing and developing infrastructure by collaborating with industrial zones that do not yet have access to natural gas supplies. PGN’s focus aligns with the regulations issued by Ministry of Industry.

During the FGD between Ministry of Industry and PGN, a mapping of industrial zones was conducted to prioritize short-term natural gas infrastructure development. There are 14 industrial zones (from 50 total zones) that will be prioritized for natural gas infrastructure development, considering the availability of PGN’s gas infrastructure and the zones’ status as National Strategic Projects. These zones include Panbil Tembesi, Bintan Industrial Estate, Kalimantan Industrial Park Indonesia, Indonesia Pomalaa Industrial Park, Makassar Industrial Zone, Buli Industrial Zone, Obi Island Industrial Zone, Teluk Weda Industrial Zone, Jorong Industrial Zone, Indonesia Morowali Industrial Park, Konawe Industrial Zone, and Motui Industrial Zone.

PGN will follow up with Joint Planning, Site Surveys, Techno-Economic Studies, and Investment Maturity Improvements for all the prioritized zones. During this time, PGN has also signed Heads of Agreement (HOA) with several industrial zones regarding the development of natural gas, with a potential demand of approximately 115 BBTUD starting in 2027.

“We are committed to expanding access to natural gas by targeting industrial zones, driven by opportunities for synergy in infrastructure development, particularly in Central and Eastern Indonesia. PGN has an integrated infrastructure concept for pipelines and beyond-pipeline services,” said Rosa on August 26, 2024. She added that, in addition to meeting gas needs, joint planning with Ministry of Industry is expected to stimulate the use of domestic natural gas and create a multiplier effect. PGN, as a business entity in the downstream gas sector, is ready to be at the forefront of realizing this goal.

“PGN’s commitment and focus on providing accessibility to natural gas in industrial zones also aim to support the government in developing industrial zones included in National Strategic Projects (PSN). The concept of integrated natural gas infrastructure can be a cohesive part of other infrastructure provisions to accelerate PSN development,” said Rosa.

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