Agus Merzi
IPMI International Business School
Amelia Naim Indrajaya
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In previous years, PGN only focused on serving industry. This was due to the commercial aspect that it was considered not feasible to install gas pipes for households. In 2013 PGN, in cooperation with the Ministry of Energy and Mineral Resources (ESDM), agreed to reduce the cost of developing the gas pipeline by establishing a large-scale gas pipeline development program and ensuring the availability of licenses so that the construction of gas pipes for households could be feasible. The program, which is called "Jargas" (Municipal Gas Distribution), optimizes the use of natural gas through pipelines to serve households by providing natural gas as a low-cost and clean form of energy.
In Indonesia, most of the energy for households in large and small cities is supplied by distributing subsidized liquefied petroleum gas (LPG) in cylinders to remote areas that were still using kerosene or wood for cooking. LPG is transported by truck through an authorized agent to get to the households, but there are still often shortages and unfair price increases, especially in small towns. Starting in 2009, the Jargas program has expanded the supply of natural gas to more than 120,000 households spread throughout Surabaya, Bogor, Mojokerto, Lampung, Tarakan, and Musi Banyuasin using polyethylene gas pipes and pressure reduction units to ensure safety, supply reliability, and reduce the carbon footprint of energy distribution.
In addition to cheaper prices, the energy that PGN supplies also has a high level of security, ease of use, and reliability. Households no longer need to worry about price increases and energy scarcity, especially for households that have home-based businesses such as fried crackers, processed foods, catering, and others. Mr. Timbul Duffy said that he is always ready to continue contributing to the Jargas program to improve the overall national quality of life by reducing LPG imports and subsidies so as to save subsidized funds for other important developments. He also hopes that the Jargas program will continue to be implemented.
The implementation of the Jargas program, which began in 2009, is one step to accelerate Indonesian development. The Jargas program is still "on the way" in several cities in Indonesia. Hopefully, the construction of Jargas is ready to have two major positive impacts. The first is the empowerment of energy that has not been optimally utilized, and the second is improvements to the economy and welfare of Indonesian society in a growing and sustainable way. Just imagine—the use of this energy will minimize the use of fossil fuel energy sources, which are increasingly thinning and soaring in price. This of course will have a real impact on government revenue that can be transferred to productive sectors.
The Jargas program indirectly develops PGN gas pipelines, so PGN is able to serve more customers with more gas usage and reduce network development investment costs. PGN can increase revenue by selling gas to commercial customers such as hotels, restaurants, hospitals, and small industries around the city of the Jargas installation. Revenue from gas sales to households is also very helpful in financing gas pipeline operational maintenance.
In addition to improving household and societal financial wellbeing, the state also benefits from the growing number of gas connections to households, as LPG subsidies and imports can be reduced. Then the state can save money by cutting the LPG subsidy, and the foreign exchange can get stronger. The implementation of Jargas is also a very good opportunity in terms of saving the environment, since natural gas is one of the types of energy claimed to be "clean" and "friendly" to nature. In addition, the contents of natural gas compared with petroleum also has a direct impact on reducing the carbon footprint.
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Timbul Duffy Aritonang, Jargas Division Head - Operation, Maintenance, and Commerce
Perusahaan Gas Negara (PGN) is Indonesia's largest gas company in the field of transportation and distribution of natural gas. PGN provides the expertise, energy, and infrastructure needed to foster Indonesia's long-term economic growth. PGN continuously integrates the natural gas business chain from upstream to downstream to serve the community.