PT. Perusahaan Gas Negara (PGN)

Bina Lingkungan PGN - Andung Biru Micro Hidro Power Plant

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Author

widi pancana

widi pancana

School

IPMI International Business School

IPMI International Business School

Professor

Amelia Naim Indrajaya

Amelia Naim Indrajaya

Global Goals

4. Quality Education 7. Affordable and Clean Energy 8. Decent Work and Economic Growth

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Summary

PGN's aid is converting river flow into electricity as clean energy in Andungbiru Village, Probolinggo East Java Indonesia by implementing Micro Hydro Power Plant

Innovation

PT. Perusahaan Gas Negara (PGN) is a State Owned Enterprise of Indonesia. The core businesses are distribution and transmission of natural gas and PGN has a vision to be a world class energy company in the gas sector by 2020. Since natural gas is one form of the fossil fuel, PGN also has a concern for renewable energy. One of PGN’s program is Bina Lingkungan (Environmental Development) related to the usage of river flow as a renewable energy source in creating electricity.

In the year 2011, PGN in cooperation with Brawijaya University – Malang East Jawa support the people of Sumber Kapung - Andungbiru Village, Tiris Sub-District, Probolinggo District East Java to produce electricity by using the river flow. The program is by providing micro-hydro equipment to the people of Sumber Kapung-Andungbiru village in producing electricity. The program also includes equipment installation and training in the maintenance and operation of electricity distribution to the houses in Sumber Kapung - Andung Biru village.

Perusahaan Listrik Negara (PLN), the State Electricity Company of Indonesia has distributed electricity to Tiris Sub District, but it has not fully reached Sumber Kapung – Andungbiru. Located in a highland passed by river which has significant differential height gives benefit for Sumber Kapung – Andungbiru to produce electricity by using the force of the river flow.

Inspite of not giving direct benefit to PGN as a natural gas company, but as an energy company PGN gets benefit in providing renewable energy by giving aid called Pembangkit Listrik Tenaga Mikro Hidro (PLTMH) / Micro Hydro Power Plant (MHPP) Andungbiru Village as Bina Lingkungan (environmental development) program to Sumber Kapung – Andungbiru's communities. As mentioned by Sutopo, CSR Representative of PGN Regional Distribution II, East Java “the impact of giving Micro Hidro Power Plant (MHPP) aid makes PGN feels very proud, because the people of Sumber Kapung – Andungbiru has successfully managed the aid and even they can give aid/charity to the orphan periodically every year"

Bina Lingkungan PGN - Andung Biru Micro Hidro Power Plant

Inspiration

The Pembangkit Listrik Tenaga Mikro Hidro (PLTMH) / Micro Hydro Power Plant (MHPP) program is one of the renewable energy usage implementation by converting the kinetic energy from river water flow in to electricity and also empowering the people of Sumber Kapung - Andungbiru Village. It matches with # 7 Affordable and Clean Energy, # 8 Decent Work and Economic Growth of the seventeen United Nations Sustainable Development Goals.

Overall impact

The impact of Pembangkit Listrik Tenaga Mikro Hidro (PLTMH) / Micro Hydro Power Plant (MHPP) program are felt by both PGN and the people of Sumber Kapung – Andung Biru. PGN gets more support from the East Java people and government in increasing its natural gas distribution network in East Java. The people of Sumber Kapung – Andung Biru Village, 125 houses, have been provided by electricity from Pembangkit Listrik Tenaga Mikro Hidro (PLTMH) / Micro Hydro Power Plant (MHPP) Andungbiru. After having electricity the youth are more motivated to continue their study to higher level than before.

“Consuming electricity from Pembangkit Listrik Tenaga Mikro Hidro (PLTMH) / Micro Hydro Power Plant (MHPP) is not a burden for the people of Sumber Kapung – Andung Biru Village, because they may pay the electricity bill not only with cash money but it can be changed into things which can be valued as money such as banana, eggs, chicken, ducks etc.” Mr Muhammad Rasid said. Mr Muhammad Rasid is the administrator of Pembangkit Listrik Tenaga Mikro Hidro (PLTMH) / Micro Hydro Power Plant (MHPP) in Sumber Kapung – Andungbiru Village.

Business benefit

The Bina Lingkungan (Environmental Development) as one of CSR program supports the PGN relation with East Java Government and it gives benefit to PGN in developing distribution network in East Java, such as in Pasuruan, Surabaya, Sidoarjo, Gresik, Probolinggo and Mojokerto District.

According to Mr. Muhammad Rasid, there is also economic benefit where some house-wife producing chips from cutting cassava using the electric cutter machine during the day. The paddy/rice increase production because the additional paddy/rice field area which get water from the canal of outlet water flow from Pembangkit Listrik Tenaga Mikro Hidro (PLTMH) / Micro Hydro Power Plant (MHPP), so the farmer can plant the paddy even in the dry season.

Social and environmental benefit

The people of Sumber Kapung – Andungbiru village experience direct societal benefits from the Pembangkit Listrik Tenaga Mikro Hidro (PLTMH) / Micro Hydro Power Plant (MHPP) program, more youth have been motivated to continue their study and it also decreases poverty as they can plant the paddy year round.

Environmentally, the people's awareness in preserving the forest in the upstream of the river increases due to the need of river flow along the year for operating the turbine in the Pembangkit Listrik Tenaga Mikro Hidro (PLTMH) / Micro Hydro Power Plant (MHPP). The Pembangkit Listrik Tenaga Mikro Hidro (PLTMH) / Micro Hydro Power Plant (MHPP) also provide clean energy since it is not using any fuel combustion in rotating the turbine to rotate the generator in producing electricity.

Interview

sutopo, CSR Representative PGN RD II Surabaya

Photo of interviewee

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Business information

PT. Perusahaan Gas Negara (PGN)

PT. Perusahaan Gas Negara (PGN)

Surabaya, East Java, ID
Business Website: http://www.pgn.co.id
Year Founded: 1965
Number of Employees: 1001 to 5000
PGN is a Indonesia State Owned Enterprise whose business is distribution and transmission of natural gas.